A bipartisan group of representatives Wednesday introduced a bill to increase federal credit union loan maturity limits. America’s Credit Unions President/CEO Jim Nussle thanked cosponsors—Reps. Scott Fitzgerald, R-Wis., Juan Vargas, D-Calif., Young Kim, R-Calif., and Brad Sherman, D-Calif.—for introducing the legislation.
Specifically, it would allow federal credit unions to make loans with maturities up to 20 years. The current limit is 15 years.
“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,” Nussle said. “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.”
“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,” said Diana Dykstra, president/CEO of the California and Nevada Credit Union Leagues.
“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,” said Brett Thompson, president/CEO of The Wisconsin Credit Union League. “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.”
America’s Credit Unions supports expanding non-mortgage loan terms, creating more affordable options for student, agricultural, and business borrowers.
Increasing loan maturity limits is part of America’s Credit Unions policy priorities, as outlined in a message to members of Congress and regulators this week.