U.S. Reps. Lee Zeldin (R-NY) and Vicente Gonzalez (D-TX) introduced a bill this week that would give the National Credit Union Administration (NCUA) greater flexibility in setting loan maturity limits under the Federal Credit Union Act.
The bill, H.R. 1661, has the support of the National Association of Federally Insured Credit Unions (NAFCU).
“NAFCU appreciates Representatives Zeldin and Gonzalez for offering this bipartisan legislation to improve credit unions’ members’ access to loans,” NAFCU President and CEO Dan Berger said. “The current 15-year limit on certain loans is outdated and does not conform to maturities that are commonly accepted in the market today. We are confident that credit unions and their 116 million members can benefit from this legislation that provides the NCUA flexibility for longer maturity products.”
Zeldin and Gonzalez are members of the House Financial Services Committee.
Credit unions should have flexibility with respect to loan maturity limits, says NAFCU. The idea of expanding maturity limits to give credit unions additional tools to grow is one of NAFCU’s 2019 priorities. In August 2018, NCUA invited comments on extending maturity limits for certain types of loans as part of a proposal to consolidate and streamline its lending regulations. NAFCU said it was supportive of any changes that the agency could make. However, it recognized that certain changes might require legislative action.