A bipartisan bill to increase federal credit union loan maturities was introduced Tuesday by Sens. Catherine Cortez Masto (D-NV) and Kevin Cramer (R-ND), and has the support of Nevada’s Credit Unions and America’s Credit Unions.
Specifically, it would amend the Federal Credit Union Act to extend loan maturity limits up to 20 years for most loans, remove the primary residence requirement for mortgages, and give the National Credit Union Administration (NCUA) Board the authority to set longer maturity terms for certain types of loans.
“Credit unions in Nevada serve over 750,000 members across the state with the mission of helping communities achieve financial wellbeing,” said Lucy Ito, interim president and CEO of Nevada’s Credit Unions. “The Expanding Access to Lending Options Act delivers targeted and meaningful regulatory relief. Specifically, the bill expands lending options for much-needed products, such as mortgages for multi-family housing units and small business loans. This added operational freedom empowers credit unions to further invest in the communities they serve.”
A House version was introduced in June by Rep. Scott Fitzgerald (R-WI) and has 22 bipartisan co-sponsors.
“We thank Senators Cortez Masto and Cramer for understanding the importance of loan maturity flexibility that will enhance credit unions’ ability to offer loans at better rates and terms consumers want,” said America’s Credit Unions President and CEO Scott Simpson. “Legislation like this enhances credit unions’ ability to help Americans make ends meet. America’s Credit Unions urges the Senate to pass this bill without delay.”
“We appreciate Senator Cramer’s leadership in introducing this bipartisan legislation to modernize loan maturity limits for credit unions,” said George McDonald, interim president and CEO of the Dakota Credit Union Association. “Providing the NCUA with flexibility to responsibly extend loan terms will help credit unions deliver more flexible financing for homes, small businesses, and consumer needs while maintaining safety and soundness. This update strengthens credit unions’ ability to serve communities across North Dakota and the country.”
