Senators Tim Scott (RS.C.) and Catherine Cortez Masto (D-Nev.) Today introduced a CUNA-backed bill, the Expanding Access to Lending Options Act, which increase the maturity limits of federal credit unions on non-mortgage loans. from 15 to 20 years old. The bill comes after strong engagement with CUNA lawmakers, as well as the Carolinas Credit Union League and Nevada Credit Union League.
“This bill from Senators Scott and Cortez-Masto will help create more opportunities for those looking to access affordable credit options and develop their financial futures,” CUNA President and CEO said, Jim Nussle. “America’s credit unions are eager to have more opportunities to partner with consumers to promote their financial well-being and move their communities forward. “
CUNA strongly supports efforts to raise the current 15-year limit for non-mortgage loans and has called on both the NCUA and the Congress to make such a change.
The law prohibits federally chartered credit unions from granting loans with terms of more than 15 years, except for mortgages. Only one state (Oklahoma) has a similar restriction on state chartered credit unions. There is no such constraint for banks.
“Senator Scott’s continued attention to loan maturity limits in the Federal Credit Union Act demonstrates his commitment to timely updates and flexibility for credit unions. Having volunteered for a credit union, he understands that this and other unnecessary barriers hamper the ability of credit unions to fully support the financial well-being of members, ”said Dan Schline, President and CEO of the Carolinas Credit Union League. “We appreciate his leadership in reintroducing this legislation, especially as consumers continue to recover from the economic impact of the pandemic. “
“Nevada credit unions, as well as those nationwide, thank and appreciate the leadership of Senators Cortez Masto and Tim Scott for this bipartisan bill. This legislation will give members of federal credit unions better access to affordable loan products with reasonable loan terms, ”said Matt Kershaw, president of the Nevada Credit Union League. “Offering higher maturity rates reduces payments and increases market access and affordability for all consumers. It is a simple element of parity allowing a level playing field between the credit unions with federal and state charters. “