H.R. 389 – Credit Union Residential Loan Parity Act

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Updated April 15, 2026 at 11:29 AM UTC

The Credit Union Residential Loan Parity Act changes the Federal Credit Union Act so that loans secured by a non‑owner‑occupied 1‑ to 4‑family home are no longer counted toward the credit union’s limit on member business loans. This lets credit unions make more loans for investment or rental properties without violating the business‑loan cap. The change mainly affects credit unions and borrowers who want a loan on a property they do not live in.

Key Provisions

Deletes the phrase “that is the primary residence of a member” from the definition of a member business loan, removing the restriction that such loans must be for a member’s primary home.
Clarifies that the National Credit Union Administration can still treat a fully secured loan on a non‑owner‑occupied 1‑ to 4‑family dwelling as a member business loan for regulatory purposes, but it will not count toward the member business loan limitation.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Financial Services.

Financial Services Committee

January 10, 2017

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HouseIntro Referral

Introduced in House

January 10, 2017

HouseIntro Referral

Referred to the House Committee on Financial Services.

Financial Services Committee

January 10, 2017

Bill Text

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Introduced in HouseIssued January 10, 2017

I

115th CONGRESS

1st Session

H. R. 389

IN THE HOUSE OF REPRESENTATIVES

January 10, 2017

Mr. Royce of California (for himself, Mr. Huffman, Mr. DeFazio, and Mr. Young of Alaska) introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To amend the Federal Credit Union Act to exclude a loan secured by a non-owner occupied 1- to 4-family dwelling from the definition of a member business loan, and for other purposes.

1.

Short title

This Act may be cited as the Credit Union Residential Loan Parity Act.

2.

Treatment of a non-owner occupied 1- to 4-family dwelling

(a)

Removal from member business loan limitation

Section 107A(c)(1)(B)(i) of the Federal Credit Union Act (12 U.S.C. 1757a(c)(1)(B)(i)) is amended by striking that is the primary residence of a member.

(b)

Rule of construction

Nothing in this Act or the amendment made by this Act shall preclude the National Credit Union Administration from treating an extension of credit that is fully secured by a lien on a 1- to 4-family dwelling that is not the primary residence of a member as a member business loan for purposes other than the member business loan limitation requirements under section 107A of the Federal Credit Union Act (12 U.S.C. 1757a).