ILC loophole, commission for down payment assistance account | 2022-06-24

The House Financial Services Committee on Thursday introduced two CUNA-backed bills: the Close the ILC Loophole Act (HR 5912) and the Downpayment Toward Equity Act of 2021 (HR 4495). CUNA wrote in support of both bills ahead of the commission’s upgrade.

HR 5912 would “prevent further exploitation of the loophole by companies seeking to reap all the benefits of an FDIC-insured bank charter without the associated oversight and regulation Congress has instituted for the business owners of full-service insured banks” , CUNA believes.

HR 4495 would set up a down payment utility that would help first-generation home buyers and low-income borrowers become homeowners. CUNA asked the committee to ask the committee to ensure that credit unions serving disadvantaged areas are explicitly eligible under the legislation.

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