Sens. Tim Scott (R-S.C.) and Catherine Cortez Masto (D-Nev.) introduced a CUNA-supported invoice Wednesday that might increase federal credit score union mortgage maturity limits on non-mortgage loans from 15 to 20 years. That is the fourth constitution modernization invoice unveiled this week throughout CUNA’s Governmental Affairs Convention (GAC).
CUNA strongly helps efforts to lift the present 15-year restrict for non-mortgages, and has referred to as on each NCUA and Congress to make such a change.
“We thank Sens. Scott and Cortez Masto for his or her bipartisan laws that might open elevated shopper entry to secure and inexpensive credit score union mortgage merchandise,” mentioned CUNA President/CEO Jim Nussle. “By lowering limitations to credit score for these debtors in search of long run loans, this laws will assist credit score unions present new alternatives for these in search of to write down their very own monetary futures.”
CUNA, together with the Carolinas Credit score Union League and the Nevada Credit score Union League, straight engaged with legislators on the significance of this invoice.
“Having served as a volunteer for Heritage Belief FCU, Senator Scott understands how pointless limitations inhibit the flexibility of credit score unions to serve their members,” Carolinas League President and CEO Dan Schline mentioned. “We respect his management in saying this laws that can present credit score unions better flexibility by addressing the mortgage maturity restrict within the Federal Credit score Union Act. We thank Senator Scott and his crew for his or her efforts, and we stay up for persevering with to work with South Carolina credit score unions and our companions at CUNA to advance the laws.”
“This invoice is one other modernization that strengthens the twin constitution system and convey extra alternatives for credit score unions to vary their member’s lives,” mentioned Diana Dykstra, president/CEO of the California and Nevada Credit score Union Leagues.
Federally chartered credit score unions are prohibited by statute from making loans with maturity limits in extra of 15 years apart from mortgage lending. Just one state (Oklahoma) has an analogous restriction on state-chartered credit score unions. No such constraint exists for banks.
The same, CUNA-supported bipartisan invoice was launched within the Home final 12 months by Reps. Lee Zeldin (R-N.Y.) and Vicente Gonzalez (D-Texas).
This invoice marks the fourth piece of credit score union modernization laws launched throughout this week’s CUNA Governmental Affairs Convention.
- On Wednesday, Reps. Katie Porter (D-Calif.) and Mark Amodei (R-Nev.) launched the Board Governance Modernization Act throughout Porter’s remarks on the GAC mainstage.
- Sens. Richard Burr (R-N.C.) and Thom Tillis (R-N.C.) launched S.3326, the Credit score Union Equity Act, on Tuesday.
- Sens. Ben Sasse (R-Neb.) and Tina Smith (D-Minn.) launched S. 3323, the Credit score Union Governance Modernization Act, on Monday.