Bipartisan Scott, Cortez Masto Senate bill would raise federal credit union loan maturity limits
WASHINGTON, DC (March 4, 2020) — Sens. Tim Scott (R-S.C.) and Catherine Cortez Masto (D-Nev.) today introduced a bill that would raise federal credit union loan maturity limits on non-mortgage loans from 15 to 20 years. The legislation, titled the “Expanding Access to Lending Options Act,” would also grant the National Credit Union Administration the authority to increase maturity limits of 1-4 non owner-occupied loans to 30 years.
“We thank Sens. Scott and Cortez Masto for their bipartisan legislation that would open increased consumer access to safe and affordable credit union loan products,” said CUNA President/CEO Jim Nussle. “By reducing barriers to credit for those borrowers seeking longer term loans, this legislation will help credit unions provide new opportunities for those seeking to write their own financial futures.”
CUNA is a longtime proponent of efforts to raise the current 15-year limit for non-mortgages, and has called on both the National Credit Union Administration (NCUA) and Congress to make such a change.
CUNA, along with the Carolinas Credit Union League and the Nevada Credit Union League, directly engaged with legislators on the importance of this bill.
“Having served as a volunteer for Heritage Trust FCU, Senator Scott understands how unnecessary barriers inhibit the ability of credit unions to serve their members,” Carolinas League President and CEO Dan Schline said. “We appreciate his leadership in announcing this legislation that will provide credit unions greater flexibility by addressing the loan maturity limit in the Federal Credit Union Act. We thank Senator Scott and his team for their efforts, and we look forward to continuing to work with South Carolina credit unions and our partners at CUNA to advance the legislation.”
“This bill is another modernization that strengthens the dual charter system and bring more opportunities for credit unions to change their member’s lives,” said Diana Dykstra, president/CEO of the California and Nevada Credit Union Leagues.
Federally chartered credit unions are prohibited by statute from making loans with maturity limits in excess of 15 years except for mortgage lending. Oklahoma is the only state that has a similar restriction on state-chartered credit unions. No such constraint exists for banks.
A similar, CUNA-supported bipartisan bill was introduced in the House last year by Reps. Lee Zeldin (R-N.Y.) and Vicente Gonzalez (D-Texas).
Alongside a series of other credit union charter enhancement bills, the Expanding Access to Lending Options Act is the fourth piece of credit union modernization legislation to be introduced aroundl CUNA’s Governmental Affairs Conference, the largest conference focused on credit union advocacy, which took place Feb. 23-26, 2020.
On Wednesday, Feb. 26, Reps. Katie Porter (D-Calif.) and Mark Amodei (R-Nev.) introduced the Credit Union Board Modernization Act; on Tuesday, Feb. 25, Sens. Richard Burr and Thom Tillis (NC) introduced S.3326, the Credit Union Fairness Act; and on Monday, Feb. 24, Sens. Ben Sasse (R-Neb.) and Tina Smith (D-Minn.) introduced S. 3323, the Credit Union Governance Modernization Act.
About CUNA
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 135 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.
