CURIA Hung Up

WASHINGTON – Disagreements between the two main credit union lobby groups, CUNA and NAFCU, have delayed progress on the impending regulatory relief bill, known as CURIA, according to sources familiar with the negotiations. The groups had hoped to get the bill introduced before next week when 4,000 credit union executives and volunteers will visit Capitol Hill for their annual lobbying pilgrimage during CUNA’s Government Affairs Conference. But Congress is in recess until next Monday night, making it unlikely the bill will be introduced by then. The two trade groups have yet to agree on language that would ease the 10-year-old cap on member business loans. NAFCU notified congressional leaders it wants to see the cap eliminated completely. CUNA has said privately it also wants the cap eliminated, but believes raising it from the current 12.25% of assets to just 20%, or 25% is more politically palatable. Congressional staff is urging the two lobby groups to come to agreement on the cap in order to get the bill introduced. The bill is expected to be significantly narrowed down from last year’s version, and focus on four main provisions, including the business loan cap, a risk-based capital system for credit union, allowing all credit unions to expand into underserved areas, and allowing credit unions to retain their select groups after converting to community charters.