Senate Banking affordability hearing today
Affordability is at the center of credit union efforts, and the topic for a Senate Banking Committee hearing today at 10 a.m. ET. In advance of the “Affordability Agenda” hearing, America’s Credit Unions submitted a comment letter outlining related credit union priorities and efforts to help consumers nationwide.
Focusing on advancing home ownership, the letter emphasized three key areas Congress could address that would help credit unions better serve their members and communities. These include:
- Increasing access to the Federal Home Loan Banks (FHLBs) for credit unions. The letter urged Congress to expand the FHLB’s Act to include credit unions in the definition of a Community Financial Institution (CFI). This would allow more credit unions to participate in FHLB loans and programs and in turn, offer more loans to credit union members.
- Extending loan terms, as addressed in S. 3616, the Expanding Access to Lending Options Act, to give credit unions more flexibility to offer longer loan terms and lower monthly payments for members. Current outdated statutory limits stand at 15 years or less, with limited exceptions.
- Modernizing field of membership restrictions, enabling credit unions to provide financial services in areas where for-profit financial institutions have reduced branches and to better serve underserved and disadvantaged populations. That expansion would enable “all credit unions to add underserved areas in order to improve access to housing and reduce gaps in homeownership rates.”
A live stream of the hearing is available online, beginning at 10 a.m. ET today.
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