Bill to Increase FCUs' Loan Maturities Limits Gains Momentum
The bill would increase federal credit unions' ability to make loans with maturities up to 20 years.
America’s Credit Unions saw a positive indication that one of its 2024 policy priorities has quickly gained steam in the U.S. House of Representatives – to increase loan maturities limits.
On Wednesday, a group of four bipartisan representatives introduced a bill to increase federal credit union loan maturity limits from 15 to 20 years.
Reps. Scott Fitzgerald (R-Wis.), Juan Vargas (D-Calif.), Young Kim (R-Calif.) and Brad Sherman (D-Calif.) are cosponsoring the bill. America’s Credit Unions President/CEO Jim Nussle and other credit union industry leaders were appreciative of this lawmaking push titled “Expanding Access to Lending Options Act.”
Nussle said, “We thank Reps. Fitzgerald, Vargas, Kim and Sherman for introducing legislation that will provide credit unions and their members much needed flexibility in loan terms. Consumers continue to feel the pinch from inflation and other economic uncertainty and rely on their trusted financial institutions for products and services to make ends meet. We support guidance provided to the NCUA to help credit union loan maturities stay competitive and bring credit options to the communities we serve.”
In a statement, Diana Dykstra, president/CEO of the California and Nevada Credit Union Leagues said, “We commend bipartisan efforts from representatives Vargas, Kim and Sherman to support credit unions. As members of the House Financial Services Committee, they are in key positions to be champions of the credit union movement. Their bill creates an opportunity for enhanced lending opportunities among credit unions, and we are grateful for this initiative.”
“For 100 years, Wisconsin’s cooperative not-for-profit financial institutions have constantly evolved to meet the needs of their members and communities, whether they face a plant closing, a pandemic, inflation or new jobs, big moves and seizing second chances. Regulations must also evolve to allow credit unions to continue this critical work,” Brett Thompson, president/CEO of The Wisconsin Credit Union League, said. “We are thankful for their foresight and trust in increasing loan maturity limits as a way to remove the red tape and allow credit unions to do what they do best—working toward financial well-being for all.”
The bill received more publicity Thursday, when Rep. Fitzgerald spoke about the legislation on the House floor.
“My bill, the Expanding Access to Lending Options Act, will increase the cap on the maturity of a loan from 15-20 years, allowing the flexibility to offer longer terms with lower monthly payments for consumers while offering greater competition for lending products, including products for small business, student and agricultural loans,” Fitzgerald said. “I look forward to working with my colleagues on this bipartisan bill to support Wisconsin credit unions and their members.”
The policy priority to increase loan maturities limits is one of 12 priorities listed by America’s Credit Unions for 2024. Those priorities are:
- Preserve the credit union tax status.
- Hold regulators accountable.
- Reform the CFPB leadership structure.
- Prevent an unlimited expansion of the NCUA’s authority.
- Protect the interchange system.
- Establish federal data protection standards.
- Ensure a fair regulatory environment.
- Expand both business and consumer access to credit unions.
- Lift member business lending caps and regulatory limits.
- Increase loan maturity limits.
- Allow new investment options for credit unions.
- Support innovation and emerging technologies balanced with regulatory oversight.