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FOR IMMEDIATE RELEASE | March 08, 2019

NAFCU-Sought NCUA Loan Flexibility Bill Introduced in House

WASHINGTON – The National Association of Federally-Insured Credit Unions (NAFCU) President and CEO Dan Berger issued the following statement after Representatives Lee Zeldin, R-N.Y., and Vicente Gonzalez, D-Texas, introduced a bill that would give the NCUA greater flexibility in setting loan maturity limits under the Federal Credit Union Act.

"NAFCU appreciates Representatives Zeldin and Gonzalez for offering this bipartisan legislation to improve credit unions' members' access to loans," said NAFCU President and CEO Dan Berger. “The current 15-year limit on certain loans is outdated and does not conform to maturities that are commonly accepted in the market today. 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."

BACKGROUND

NAFCU has long advocated for credit unions to have flexibility with respect to loan maturity limits. In August 2018, the NCUA issued a proposal inviting comment on extending maturity limits for certain types of loans as part of a proposal to consolidate and streamline its lending regulations. NAFCU was very supportive of any changes that the agency could make, but recognized that certain changes might require legislative action.

Expanding maturity limits to give credit unions additional tools to grow is one of NAFCU’s 2019 priorities.

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The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to www.nafcu.org or @NAFCU on Twitter.