CUNA backs maturity limit increase as part of FCUA modernization
Longer maturity limits for federal credit union loans would allow credit unions to better service members, CUNA wrote to Reps. Lee Zeldin (R-N.Y.) and Vicente Gonzalez (D-Texas) Monday. Zeldin and Gonzalez introduced a bill, H.R. 1661 that would amend the Federal Credit Union Act to provide NCUA with the flexibility to increase loan maturity limits for federal credit unions.
“One area that this change may impact is student lending. The ability to set a longer loan maturity for Federal credit union loans would provide student borrowers across the country with more opportunities for education that is more affordable both in the short and long term,” wrote CUNA President/CEO Jim Nussle. “Credit unions would also be able to better service loans for the agricultural sector and other businesses requiring significant cost of entry.”
Except for mortgage lending, Federally-chartered credit unions are prohibited by statute from making loans with maturity limits in excess of 15 years. Only Oklahoma has a similar restriction on state-chartered credit unions and no such constraint exists for banks.
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