Bipartisan Scott, Cortez Masto Senate bill would raise Federal Credit Union loan maturity limits

February 26, 2020

February 26, 2020
Washington, DC

Lauren Williams
CUNA Communications

A bill that would raise federal credit union loan maturity limits on non-mortgage loans from 15 to 20 years was announced today by Sens. Tim Scott (R-S.C.) and Catherine Cortez Masto (D-Nev.). The legislation is the fourth charter modernization bill unveiled this week during the Credit Union National Association Governmental Affairs Conference (CUNA GAC). 

On Wednesday, Reps. Katie Porter (D-Calif.) and Mark Amodei (R-Nev.) introduced the Credit Union Board Modernization Act; on Tuesday Sens. Richard Burr and Thom Tillis (NC) introduced S.3326, the Credit Union Fairness Act; and on Monday Sens. Ben Sasse (R-Neb.) and Tina Smith (D-Minn.) introduced S. 3323, the Credit Union Governance Modernization Act.

CUNA is a longtime proponent of efforts to raise the current 15-year limit for non-mortgages, and has called on both the National Credit Union Administration (NCUA) and Congress to make such a change.

“We thank Sens. Scott and Cortez Masto for their bipartisan legislation that would open increased consumer access to safe and affordable credit union loan products,” said CUNA President/CEO Jim Nussle. “By reducing barriers to credit for those borrowers seeking longer term loans, this legislation will help credit unions provide new opportunities for those seeking to write their own financial futures."

CUNA, along with the Carolinas Credit Union League and the Nevada Credit Union League, directly engaged with legislators on the importance of this bill.

“Having served as a volunteer for Heritage Trust FCU, Senator Scott understands how unnecessary barriers inhibit the ability of credit unions to serve their members," Carolinas League President and CEO Dan Schline said. "We appreciate his leadership in announcing this legislation that will provide credit unions greater flexibility by addressing the loan maturity limit in the Federal Credit Union Act. We thank Senator Scott and his team for their efforts, and we look forward to continuing to work with South Carolina credit unions and our partners at CUNA to advance the legislation.”

“This bill is another modernization that strengthens the dual charter system and bring more opportunities for credit unions to change their member's lives,” said Diana Dykstra, president/CEO of the California and Nevada Credit Union Leagues.

Federally chartered credit unions are prohibited by statute from making loans with maturity limits in excess of 15 years except for mortgage lending. Oklahoma is the only state that has a similar restriction on state-chartered credit unions. No such constraint exists for banks.

A similar, CUNA-supported bipartisan bill was introduced in the House last year by Reps. Lee Zeldin (R-N.Y.) and Vicente Gonzalez (D-Texas). 


About CUNA:           
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 115 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit To find your nearest credit union, visit