News Release
Contact: Public Relations Coordinator
(800) 342-9835, ext. 8130League President Testifies at Senate Banks Committee Meeting
(May 15 - Latham, NY) – William J. Mellin, president/CEO of the New York State Credit Union League, appeared before the New York State Standing Committee on Banks on behalf of New York’s credit unions to voice his support, as well as his concerns, about the Governor’s Program Bill #44 (S.8143/A.10817).
The bill, introduced in response to the current mortgage foreclosure crisis and subprime lending practices in the state, primarily seeks to expand protections currently afforded to high-cost mortgages to a new category of non-conventional mortgages, strengthen and expand New York’s Anti-Predatory Lending law and amend the penal law to include crimes relating to mortgage fraud.
Throughout his testimony, Mellin expressed credit union’s support of all aspects of the legislation except for the low interest rate threshold component.
"While we agree that the existing thresholds are perhaps too high for the industry, we are concerned that the thresholds proposed in this bill are too low," said Mellin. "If thresholds are to remain a key component of the legislation I ask that you consider the unique not-for-profit, member-owned, ‘people helping people’ philosophy of credit unions and exempt them from a stated threshold."
Mellin laid out credit unions’ history of responsible lending to the Banks Committee chaired by Senator Hugh Farley (R-Adirondack/Capital). He shared basic credit union underwriting practices where both borrowers and lenders have a mutual interest in each other’s success, and how the proposed threshold might negatively impact a credit union’s ability to make loans to its membership.
Additionally, Mellin pointed out how the threshold would not only apply to the economically disadvantaged, it would affect a class of borrowers that historically have not been in need of increased legislative or regulatory protections.
"Credit unions do not engage in predatory practices," stated Mellin. "Credit unions were originally formed to help many New Yorkers achieve the ‘American Dream’ when other lenders would not, and this current crisis again demonstrates the need for credit unions."
In closing, Mellin thanked the committee for the opportunity to share the credit union perspective on the bill and encouraged them to focus more on underwriting principles and to consider credit unions as a viable solution to today’s subprime mortgage crisis.
The New York State Credit Union League (NYSCUL) has served as the trade association for the state’s credit unions for 91 years. It is the fifth largest league in the country. New York credit unions have assets of more than $40 billion and 4.2 million members. To learn more about the League, visit www.nyscul.org.
William J. Mellin, president/CEO, New York State Credit Union League, addresses the State Standing Committee on Banks at their May 12 public hearing in Albany, "Evaluating the Governor’s Program Bill to address mortgage foreclosures and subprime lending practices in New York State."
New York State Credit Union
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