ROAD to Housing Act Becomes Law, Delivering Key Wins for Credit Unions

Credit unions achieved a significant legislative victory this month with the enactment of the bipartisan 21st Century ROAD to Housing Act. The legislation officially became law on July 11 after President Donald Trump neither signed nor vetoed the bill during the constitutionally prescribed 10-day review period.

The comprehensive housing and financial services package includes several long-standing priorities for credit unions and other community financial institutions. The law is intended to modernize regulatory requirements, improve operational flexibility, and expand access to financial services and homeownership opportunities.

Among the most significant provisions is the Credit Union Board Modernization Act, which allows qualifying federal credit union boards to meet at least six times per year instead of the current monthly requirement. Eligible federal credit unions that meet certain financial and operational standards may take advantage of the reduced meeting schedule, providing greater flexibility while maintaining strong governance and board oversight.

The legislation also includes several additional provisions benefiting credit unions and the communities they serve.

• Regulatory relief. The Act contains targeted regulatory relief measures designed to reduce unnecessary compliance burdens for community financial institutions. Lower compliance costs can allow credit unions to devote more resources to lending, technology, cybersecurity, member service, and other operational priorities.

• Expanded mortgage lending opportunities. The legislation is intended to make it easier for community lenders, including credit unions, to participate in the mortgage market by reducing regulatory costs associated with originating home loans. Supporters say the changes will help smaller lenders compete more effectively while expanding access to affordable mortgage financing.

• Support for smaller and minority credit unions. The Act establishes a Mentor-Protégé Program that encourages partnerships between larger financial institutions and Minority Depository Institution and other qualifying credit unions. The program is designed to foster collaboration, technical assistance, and the sharing of operational expertise to strengthen participating institutions.

• Streamlined chartering process. Through the American Access to Banking Act, the legislation simplifies the federal charter application process for new, or de novo, credit unions and community banks. The changes are intended to reduce barriers to establishing new financial institutions and improve access to financial services in underserved communities.

Federal advocacy efforts continue as Congress and regulators consider additional issues affecting the credit union industry, with several key developments on the horizon that could shape the regulatory and operational landscape for credit unions in the months ahead.

The Senate Banking Committee is expected to consider John Crews' nomination to the National Credit Union Administration Board before the August recess. If confirmed, Crews would fill one of the agency's board seats and help oversee the federal regulator responsible for supervising and insuring federal credit unions.

The NCUA is also accepting comments through this week on its proposed rule implementing portions of the GENIUS Act related to payment stablecoins. The proposal would establish a regulatory framework governing how federally insured credit unions may engage in payment stablecoin activities under the new law. The agency is seeking feedback on supervisory expectations and implementation requirements before finalizing the rule.

Cornerstone continues to monitor these and other federal legislative and regulatory developments, engage with policymakers, and advocate on behalf of member credit unions. The League will continue providing updates as significant actions move through Congress and the regulatory process.