WASHINGTON—Senate Banking Committee Members Tim Scott (R-SC) and Catherine Cortez Masto (D-NV) have introduced legislation, the Expanding Access to Lending Options Act (S. 3389), that would give the NCUA greater flexibility in setting loan maturity limits under the Federal Credit Union Act.
Reps. Lee Zeldin (R-NY) and Vicente Gonzalez (D-TX) previously introduced a House version for loan maturity relief last March.
"NAFCU thanks Senators Tim Scott and Catherine Cortez Masto for offering this bipartisan legislation to help credit unions improve flexibility in offering members credit," said NAFCU President and CEO Dan Berger. “The current 15-year limit on certain loans is outdated and does not conform to maturities that are commonly accepted in today’s marketplace.
"We are confident that credit unions and their 120 million members will benefit from this legislation, as it provides the NCUA flexibility for maturity products up to 20-years and removes restrictive requirements on 30-year mortgages," Berger added. "NAFCU will continue to engage with all members of Congress as we advocate on this important issue.”
“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.”