A new bipartisan bill from two members of the House Financial Services Committee aims to ease restraints on the National Credit Union Administration’s ability to set loan maturity limits.
H.R. 1661, from U. S. Reps. Lee Zeldin (R-NY) and Vicente Gonzalez (D-TX), would amend the fifth sub-clause in Section 107 of the Federal Credit Union Act to read: “A federal credit union shall have succession in its corporate name during its existence and shall have power to make loans, the maturities of which shall not exceed 15 years, or any longer maturity as the [NCUA] board may allow, in regulations."
The National Association of Federally-Insured Credit Unions, which has advocated for increased flexibility on loan maturity limits and pushed for the proposed legislation, said amending the FCU Act would have widespread benefits.
"The current 15-year limit on certain loans is outdated and does not conform to maturities that are commonly accepted in the market today,” NAFCU President and CEO Dan Berger said in a statement. “We are confident that credit unions and their 116 million members can benefit from this legislation that provides the NCUA flexibility for longer maturity products."
According to Ryan Donovan, chief advocacy officer at the Credit Union National Association, this legislation would be in line with regulations in nearly all 50 states, “so it makes sense for Congress to eliminate this restriction and allow credit unions to more fully serve their members.”
Back in August of 2018, the NCUA board
