A bipartisan group of congressional representatives introduced a bill this week to increase federal credit union loan maturity limits.
California and Nevada Credit Union Leagues President and CEO Diana Dykstra and America’s Credit Unions (ACU) President and CEO Jim Nussle both thanked the cosponsors for introducing this essential legislation — Reps. Juan Vargas (D-CA), Young Kim (R-CA), Brad Sherman (D-CA), and Scott Fitzgerald (R-WI).
Specifically, the bill would allow federal credit unions to make loans with maturities up to 20 years. The current limit is 15 years.
“We commend bipartisan efforts from representatives Vargas, Kim, and Sherman to support credit unions,” Dykstra said. “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.”
Nussle added: “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. 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.”
The Leagues and ACU supports expanding non-mortgage loan terms, creating more affordable options for student, agricultural, and business borrowers. Increasing loan maturity limits is part of the Leagues and ACU policy priorities, as outlined in a message to members of Congress and regulators this week.