WASHINGTON, DC – Congressman Scott Fitzgerald (WI-05) introduced the Expanding Access to Lending Options Act, which would allow the National Credit Union Administration Board to increase the federal credit union loan maturity cap to 20 years, or longer if the Board allows by regulation. It also allows loan maturities for 1–4-unit principal and non-principal residences to be extended to 30 years.
“As the cost of living continues to rise, families and small businesses need more flexible, affordable lending options,” said Congressman Scott Fitzgerald. “This bill gives credit unions the ability to offer longer-term loans, helping borrowers plan for the future and stay on top of their financial obligations without being locked into high monthly payments.”
“Economic uncertainty makes managing finances difficult. With the introduction of legislation to provide credit unions with loan maturity flexibility, Reps. Fitzgerald, Fitzpatrick, Sherman, Meuser, Kim, Vargas, and Timmons are giving 142 million Americans much-needed financial relief,” said America’s Credit Unions President/CEO Jim Nussle. “This bill enhances credit unions’ ability to offer loans at rates and terms that fit their members’ needs. Credit unions are a safe haven for Americans trying to make ends meet and invest in their future. We thank the lawmakers for introducing this bipartisan legislation, and we urge the House to quickly advance it.”
“Wisconsin’s cooperative not-for-profit credit unions have evolved to meet the needs of their 3.9 million members and the communities they live and work in, serving as a lifeline and trusted financial partner for over 100 years,” said Sarah Wainscott, President & CEO of The Wisconsin Credit Union League. “This bill delivers impactful regulatory evolution to increase loan maturity limits and remove red tape, allowing credit unions to better invest in what they do best – working toward the financial well-being for all. Wisconsin credit unions applaud and deeply appreciate the leadership of Congressman Fitzgerald and his colleagues for believing in credit unions and investing in policy that gives consumers greater opportunity for financial health and freedom.”
BACKGROUND: Credit unions are generally prohibited from offering loans beyond a 15-year term, with limited exceptions. As costs rise, so does the need for larger loan limits and longer terms to make repayment more manageable. Allowing the flexibility to offer longer terms would lower monthly payments for consumers while offering greater competition for lending products, including small business, student, and agricultural loans. Any change to the loan term would not change credit unions’ member business lending cap of 12.25% of their assets for small business loans.
SUPPORTERS: America’s Credit Unions and the Wisconsin Credit Union League.
Read the bill text here.
