DCUC Calls for Lending Expansion, NFIP Reauthorization, and Balanced CFPB Oversight

The Defense Credit Union Council (DCUC) pressed forward in its advocacy this week with proactive engagement on additional legislative priorities directly impacting military families and the credit unions that serve them.

​In recent correspondence with lawmakers, DCUC highlighted three key initiatives: modernizing outdated federal credit union loan maturity limits, reauthorizing the National Flood Insurance Program (NFIP), and ensuring regulatory accountability at the Consumer Financial Protection Bureau (CFPB). ​

Modernizing Loan Terms to Better Serve Members
DCUC continues its strong support for the Expanding Access to Lending Options Act, recently reaffirmed in a letter to Representative Scott Fitzgerald.
 
Currently, federal credit unions face a 15-year loan maturity cap, which limits their ability to meet members' needs. Rep. Fitzgerald’s bill would authorize the National Credit Union Administration (NCUA) to extend this cap to 20 years and permit terms of up to 30 years on 1–4 unit residential mortgages.
 
This legislation would modernize outdated loan maturity limits for federal credit unions, providing greater flexibility for families, small businesses, and servicemembers (e.g. longer loan terms can significantly lower monthly payments, aiding military families planning for civilian life or purchasing future homes).
 
Reauthorizing the National Flood Insurance Program (NFIP)
DCUC also strongly advocated for the long-term reauthorization of the National Flood Insurance Program (NFIP) before its current authority expires on September 30, 2025. See DCUC’s letter here.
 
As credit unions operate on or near U.S. military installations worldwide, they witness firsthand the NFIP’s critical role in safeguarding communities. DCUC believes timely reauthorization is essential to prevent disruption in homeownership and mortgage markets, particularly in flood-prone areas.
 
DCUC shared how credit unions rely on the NFIP to meet federal flood insurance requirements for home loans in designated zones; a lapse in the program could stall approximately 1,300 home sales per day nationwide, impacting families and freezing real estate markets. DCUC reminded that historical lapses, like in June 2010, delayed or canceled more than 40,000 closings per month. Without NFIP coverage, lenders and communities bear greater risks, and borrowers could be left unable to rebuild after disasters.
 
“For military families undergoing Permanent Change of Station (PCS) moves, the NFIP’s continuity is especially vital,” says Anthony Hernandez, DCUC President/CEO. “An NFIP lapse could delay home sales or purchases during relocations, forcing families into financial hardship. Stable housing supports mission readiness, family resilience, and long-term economic security.”
 
“DCUC supports reforms that make the NFIP more fiscally sound while preserving affordability. Improvements like better flood mapping, mitigation incentives, and balanced pricing can help the program remain widely accessible,” says Jason Stverak, Chief Advocacy Officer. “We’re asking Congress to act swiftly to reauthorize the NFIP and implement thoughtful reforms…a multi-year extension will ensure credit unions can continue supporting members and communities without interruption.”
 
Balancing Oversight and Flexibility
In addition to supporting the lending bill and NFIP reauthorization, DCUC provided its comments for the record on the Subcommittee hearing, "From Watchdog to Attack Dog," expressing concern with the Consumer Financial Protection Bureau’s (CFPB) aggressive regulatory posture. DCUC cautioned against sweeping, one-size-fits-all rules that disproportionately harm smaller credit unions.
 
In our letter, DCUC cited recent CFPB rules—the $5 overdraft fee cap and proposed reductions in credit card late fees—examples of “well-meaning” policies with harmful consequences. These rules penalize responsible institutions and likely reduce services for consumers.
 
DCUC also raised concerns about data-sharing rules under Section 1033 of the Dodd-Frank Act, calling fore strong safeguards to protect military families from cyber threats and predatory actors.
 
A Constructive CFPB
DCUC supports a collaborative, transparent approach to regulation and advocates for the following CFPB reforms:
 

• Transition to a bipartisan commission model
• Subject CFPB to congressional appropriations
• Establish an independent Inspector General
• Require rigorous cost-benefit analysis for major rulemakings
• Elevate the role of small institutions in rulemaking

 
DCUC commends congressional efforts to roll back harmful regulations and acknowledged positive CFPB actions, such as withdrawing outdated guidance. This shift toward clarity and consistency is vital for credit unions as they continue to serve America’s communities.
 
“DCUC remains committed to working with Congress and the CFPB to protect consumers and support military families and their financial well-being,” adds Hernandez. “Through thoughtful reform and open dialogue, regulators can uphold protections without harming trusted institutions that serve those who serve our country.”
 
“DCUC also urges Congress to make NFIP reauthorization a top priority and ensure timely passage to protect communities, credit unions, and America’s military families,” Stverak says. “Whether we’re advocating for smarter lending rules, supporting critical programs like the NFIP, or urging balanced oversight from regulators, DCUC and our member credit unions’ goal remains the same: to protect and champion the financial well-being of those who protect us.”
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