House Bill Would Lift Loan Term Limits

Credit Union National Association on Tuesday urged passage of a bipartisan bill filed in the House which once again attempts to raise loan term limits and exclude more loans from the member business lending cap.

The bill, filed by Brian Fitzpatrick (R-Pa.) and Vicente Gonzalez (D-Texas), would drop language that limits most credit union loans to terms of 15 years or less and instead allow NCUA to set limits at its discretion. First mortgages for primary residences are already excluded from those limits, but credit unions want to offer longer-term loans of 20 to 30 years for second homes and commercial loans, either as first or second lien.

Businesses seeking those longer-term loans for lower monthly payments have been locked out of credit unions and forced to go to banks. Credit unions have also been trying to ease limits on commercial lending imposed by caps on member business loans.

Read more at Credit Union Times.