Good news travels fast in the credit union world, and this week brought some of the best news in years.
The 21st Century ROAD to Housing Act—yes, that’s actually what they’re calling it—cleared its final congressional hurdle Tuesday night and is now sitting pretty on President Trump’s desk, waiting for a signature.
The House gave the bill a resounding thumbs up with a 358-32 vote, following Monday’s Senate approval where it sailed through 85-5. When’s the last time you saw that kind of bipartisan agreement on anything? Exactly.
Why Credit Unions Are Celebrating
Buried inside this housing legislation is something the credit union industry has been pushing for relentlessly: the Credit Union Board Modernization Act, or CUBMA for those who love a good acronym. America’s Credit Unions wasted no time releasing a statement thanking the people who made it happen.
“With the House’s vote of approval on this housing package, the Credit Union Board Modernization Act is now set to become law,” said Scott Simpson, President and CEO of America’s Credit Unions. He gave special props to House Financial Services Chairman French Hill and Ranking Member Maxine Waters for championing the bill and understanding that credit unions need flexibility to actually help people afford housing.
What’s in This Thing?
The bill isn’t just about board meetings (though we’ll get to that). It’s packed with provisions that could genuinely help credit unions serve their members better:
- Credit Union Board Modernization Act: Federal credit union boards can now meet six times a year instead of the current twelve. That’s right—they were legally required to meet every single month, which is about as outdated as a flip phone.
- Mentor-Protégé Program for Small Financial Institutions Act: This creates a framework for smaller credit unions and minority depository institutions to partner with larger credit unions for mentorship. Think of it as a buddy system, but for financial institutions.
- American Access to Banking Act: Streamlines the federal application process for new credit unions and community banks. Less red tape means more institutions can actually get started serving their communities.
The Defense Angle
The Defense Credit Union Council (DCUC) is particularly fired up about this legislation, and for good reason. Military families face a perfect storm of housing challenges—constant moves, deployments, and the general chaos that comes with military life.
“Credit unions witness the housing affordability crisis firsthand, especially among military communities who face frequent relocations, deployments, and unique financial challenges,” said Anthony Hernandez, DCUC President and CEO (and retired U.S. Air Force Colonel, because of course). The bill’s focus on increasing housing supply and expanding affordability hits close to home for these communities.
Jason Stverak, DCUC’s Chief Advocacy Officer, summed it up nicely: “The overwhelming bipartisan support for this legislation demonstrates that housing affordability is an issue that rises above politics.” In today’s political climate, that’s saying something.
What Happens Next?
The ball’s in President Trump’s court now. Both America’s Credit Unions and DCUC are urging him to sign quickly so these reforms can start making a real difference. Given the massive bipartisan support—we’re talking 85-5 in the Senate, people—there’s every reason to expect a signature sooner rather than later.
For credit unions that have been advocating for CUBMA and these other modernizations, this represents years of work finally paying off. It’s not just about fewer board meetings (though board members probably aren’t complaining). It’s about bringing regulations into the 21st century so credit unions can focus on what they do best: helping their members achieve financial stability and, yes, maybe even buy a home in this wild housing market.