Bill Summary
This bill, titled the "Expanding Access to Lending Options Act," aims to provide the National Credit Union Administration Board with the ability to increase the maximum term of loans for Federal credit unions. This would allow for loans to be extended for up to 20 years, which is an increase from the current maximum of 15 years. This change would be subject to regulations set by the Board. The amendment also removes the requirement that the loan must be for a credit union member's principal residence.
Possible Impacts
1. A credit union member may be able to take out a loan with a longer term, up to 20 years, as allowed by the National Credit Union Administration Board. This could potentially make it easier for people to afford large expenses, such as buying a house or starting a business.
2. The amendment to the Federal Credit Union Act could lead to changes in regulations for credit unions, potentially making it easier for people to access loans and other financial services.
3. The "Expanding Access to Lending Options Act" could have a positive impact on low-income individuals and families who may have difficulty obtaining credit from traditional banks, as credit unions often have more flexible loan options.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3389 Introduced in Senate (IS)]
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116th CONGRESS
2d Session
S. 3389
To provide the National Credit Union Administration Board flexibility
to increase Federal credit union loan maturities, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 4, 2020
Mr. Scott of South Carolina (for himself and Ms. Cortez Masto)
introduced the following bill; which was read twice and referred to the
Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To provide the National Credit Union Administration Board flexibility
to increase Federal credit union loan maturities, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Expanding Access to Lending Options
Act''.
SEC. 2. POWERS OF FEDERAL CREDIT UNIONS.
Section 107(5) of the Federal Credit Union Act (12 U.S.C. 1757(5))
is amended--
(1) in the matter preceding subparagraph (A), by inserting
``or up to a term of 20 years as the Board may allow, in
regulations'' after ``15 years''; and
(2) in subparagraph (A)(i), by striking ``or will be the
principal residence of a credit union member, and which is''.
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