WASHINGTON–The Expanding Access to Lending Options Act has been introduced in Congress, and it has the full support of credit unions.
The legislation was introduced by Senate Banking Committee Members Tim Scott (R-SC) and Catherine Cortez Masto (D-NV). Among other powers, it would give NCUA greater flexibility in setting loan maturity limits under the Federal Credit Union Act, raising federal credit union loan maturity limits on non-mortgage loans to 20 years from 15.
CUNA said it was joined by the Nevada Credit Union League and the Carolinas Credit Union League in working to engage legislators in introducing the bill, while NAFCU also expressed support.
"NAFCU thanks Senators Tim Scott and Catherine Cortez Masto for introducing legislation that will provide credit unions and their members with better tailored options for loans," said NAFCU President and CEO Dan Berger. "The coronavirus pandemic has underlined the need for several reforms to ensure credit unions can provide products and services that meet members' needs, and providing the NCUA flexibility for maturity products and removing restrictive requirements on certain loans is a step in the right direction. NAFCU will continue its longstanding advocacy to modernize the outdated, 15-year limit on certain loans and help bring credit union maturities in line with today's marketplace."
CUNA Response
Added CUNA CEO Jim Nussle, “This bill by Senators Cortez-Masto and Scott will help create more opportunities for those seeking opportunities to access affordable credit options and grow their financial future. America’s credit unions look forward to having more opportunities to partner with consumers to promote their financial well-being and advance their communities.”