U.S. Sens. Tim Scott (R-SC) and Catherine Cortez Masto (D-NV) introduced a bill in the U.S. Senate that would give the National Credit Union Administration (NCUA) more flexibility in setting loan maturity limits under the Federal Credit Union Act.
It is legislation that the National Association of Federally-Insured Credit Unions (NAFCU) has advocated for and supports.
“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,” NAFCU President and CEO Dan Berger said. “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 NAFCU will continue its longstanding advocacy to modernize the outdated, 15-year limit on certain loans and help bring credit union maturities in line with today’s marketplace.”
NAFCU has long been an advocate for credit unions having more flexibility on loan maturity limits. Further, it has been a key component of NAFCU’s advocacy during the coronavirus pandemic.
A similar piece of legislation was introduced by Scott and Cortez Masto, both members of the Senate Banking Committee, in the Senate last year. In addition, a similar bill was introduced in the U.S. House of Representatives in 2019.