Congress should act to close the Industrial Loan Corporation (ILC) loophole, CUNA wrote to the House Financial Services Committee on Tuesday. CUNA wrote to the committee ahead of its markup of several bills, including the Close the ILC Loophole Act (HR 5912)

“We support passage of HR 5912 to prevent further exploitation of the loophole by companies seeking to obtain all the benefits of an FDIC-assured banking charter without the concurrent oversight and regulation that Congress has established to full-service business owners insured banks,” the letter read.

CUNA also wrote in support of the Payout to Equity Act of 2021 (HR 4495), asking the committee to ensure that credit unions that serve underserved areas are explicitly eligible under the legislation.

“Credit unions recognize the importance of closing the racial gap in homeownership and support efforts to establish a down payment assistance program that will help first-generation buyers and borrowers low-income earners to become homeowners,” the letter reads. “We support the possibility of layering state assistance with the criteria the bill establishes regarding area median income (AMI) which will hopefully allow access to borrowers in low-cost areas. raised.”

CUNA also wrote against legislation making changes to overdraft programs, noting that financial institutions such as credit unions are better placed to determine the future of overdraft protections, not restrictive legislation.