CURIA: Congress Eyes new Way on CU Conversions

WASHINGTON – Lawmakers are still dickering over new limits on member business lending, as they try to wrap up work on CURIA and introduce it in the House. Pennsylvania’s Paul Kanjorski, the hero of HR 1151 a decade ago, told attendees to CUNA’s Governmental Affairs Conference he is considering new ways to make it tougher to convert to mutual savings banks as he completes drafting the bill, the CU Regulatory Improvements Act. An ardent critic of the credit union conversions, Kanjorski said he may require a special meeting of members before they vote on the charter switch, and also require at least 30% of all members vote. This would make it very difficult to convert because few of the 40 credit unions converting to savings bank so far have obtained a 30% vote. “We’re just not going to allow smart aleck Washington lawyers and (credit union insiders) to go out and rape credit unions,” the Democratic lawmaker said. Kanjorski also said he has not settled on a number for increasing the current 12.25% (of assets) cap on member business loans, and may go to 20%, as in last year’s bill, or “nudge it a little above that.” The bill will also include provisions enacting a risk-based capital system for credit unions; allowing credit unions to retain their select groups after converting to community charters; and allowing all credit unions to add underserved communities to their fields of membership.