Cortez Masto Introduces Bipartisan Legislation to Increase Flexibility for Credit Unions, Lower Costs for Borrowers

Washington, D.C. - Today, U.S. Senators Catherine Cortez Masto (D-Nev.) and Kevin Cramer (R-N.D.) introduced bipartisan legislation to allow credit unions more flexibility when lending for non-primary residence, business, and commercial loans. The Expanding Access to Lending Options Act would permit federally chartered credit unions to permit loan maturity periods for up to 20 years.

Currently, federally charted credit unions are not permitted to issue loans for a period longer than 15 years, except for primary residences. Banks and most state-chartered credit unions, however, are not subjected to the same limitation, reducing options for consumers and putting an unfair burden on federally chartered credit unions. This bipartisan legislation would allow people seeking financing to start a small business, attend college, buy a motor home, or for other purposes, to receive a loan from a federally chartered credit union.

"Credit unions provide essential services to communities across the Silver State, particularly in rural and underserved areas," said Senator Cortez Masto. "My bipartisan bill would provide a commonsense, simple fix that helps people finance their dreams."

Nevada has two federally chartered credit unions: the Great Basin Federal Credit Union and the Elko Federal Credit Union.

"We thank Senators Cortez Masto and Cramer for understanding the importance of loan maturity flexibility that will enhance credit unions' ability to offer loans at better rates and terms consumers want. Legislation like this enhances credit unions' ability to help Americans make ends meet. America's Credit Unions urges the Senate to pass this bill without delay," said Scott Simpson, President and CEO of America's Credit Unions.

"Credit unions in Nevada serve over 750,000 members across the state with the mission of helping communities achieve financial wellbeing," said Lucy Ito, Interim CEO of Nevada's Credit Unions. "The Expanding Access to Lending Options Act delivers targeted and meaningful regulatory relief. Specifically, the bill expands lending options for much-needed products, such as mortgages for multi-family housing units and small business loans. This added operational freedom empowers credit unions to further invest in the communities they serve."

"Increasing the loan maturity limit for federally chartered credit unions will greatly help the Elko Federal Credit Union," said Todd Sorenson, President and CEO of Elko Federal Credit Union. "When interest rates are low, consumers shop around: they want the certainty of a lower rate for a longer term. It's in this environment that federal credit unions are less competitive. Many customers seeking loans at our credit union have pursued other loan options when we communicate the maturity date limitation. I am grateful to Senators Cortez Masto and Cramer for their work to ensure credit unions can better serve their members."

The full text of this legislation can be found here.

Senator Cortez Masto has consistently supported lowering costs for working families in Nevada. She has championed legislation to end taxes on tips and worked to address barriers in its implementation. Recently, she introduced legislation to increase tax benefits for working Nevadans. She has introduced legislation to ensure Medicare can continue to negotiate the price of expensive cancer medications. She has secured millions of dollars for low-income Nevadans to pay their electric bills through the Low Income Home Energy Assistance program.

###