On September 7, 2016, the Independent Community Bankers of America (ICBA) filed suit against the National Credit Union Administration (NCUA) for unlawful rulemaking for allowing tax-exempt credit unions to exceed commercial lending limits set by Congress. The NCUA rule would dramatically expand lending loopholes for credit unions by allowing them to exclude purchased nonmember commercial loans and participations from the calculation of their aggregate member business loans.
This unlawful rulemaking is the latest step in the NCUA’s transformation from a federal financial regulator to a cheerleader for its taxpayer-subsidized industry. The NCUA action in rulemaking is contrary to the plain language of the Federal Credit Union Act, as amended by the Credit Union Membership Access Act, which expressly limits the amount of member business loans that may be held on credit union balance sheets.
Opposing the expansionist agenda of credit unions has long been a federal policy priority of CBAI. CBAI which fully supports the ICBA legal action against the NCUA for ignoring its statutory boundaries and its blatant end-around Congress. Read Complaint.
September 7, 2016