Removing Barriers Blog

Another piece of charter enhancement legislation introduced in the Senate -- the Expanding Access to Lending Options Act
Posted March 04, 2020 by CUNA Advocacy

Senators Tim Scott (R-SC) and Catherine Cortez Masto (D-NV) introduced a CUNA-supported legislation that would raise federal credit union loan maturity limits on non-mortgage loans from 15 to 20 years, the Expanding Access to Lending Options Act. CUNA wrote a letter of support of Scott and Cortez Masto on the day the legislation was introduced.

CUNA, along with the Carolinas Credit Union League and the Nevada Credit Union League, directly engaged with legislators on the importance of this bill. Senator Scott announced the bill during last week's CUNA Governmental Affairs Conference (GAC) during a meeting with the Carolinas Credit Union League. 

CUNA strongly supports efforts to raise the current 15-year limit for non-mortgages, and has called on both NCUA and Congress to make such a change.  Federally chartered credit unions are prohibited by statute from making loans with maturity limits in excess of 15 years except for mortgage lending. Only one state (Oklahoma) has a similar restriction on state-chartered credit unions. No such constraint exists for banks.

A similar, CUNA-supported bipartisan bill was introduced in the House last year by Reps. Lee Zeldin (R-N.Y.) and Vicente Gonzalez (D-Texas).