America’s Credit Unions is urging the NCUA to extend the temporary 18% interest rate ceiling for loans made by federal credit unions, citing continued economic headwinds and the need to protect member access to affordable credit.
In a letter sent Wednesday to NCUA Chairman Kyle Hauptman, James Akin, the group’s head of regulatory advocacy, commended the agency for maintaining the higher ceiling through March 2026 and called for an additional extension. The NCUA Board has voted 23 times since 1980 to uphold the elevated cap, which temporarily supersedes the Federal Credit Union Act’s 15% statutory limit when warranted by market conditions.
“Keeping the ceiling at 18% remains essential to protect safety and soundness, by preserving needed pricing flexibility amid higher funding and credit costs,” Akin wrote. “Allowing the ceiling to revert to 15% would harm the very members credit unions exist to serve.”
America’s Credit Unions also urged Hauptman to use his authority to maintain the rate unilaterally if the NCUA Board is operating with vacancies next year. The agency has confirmed in past precedents, most notably in 2002 under then-Chairman Dennis Dollar, that a single Board Member can fulfill statutory duties when others have yet to be confirmed.
Industry observers have said the issue is critical as credit unions continue balancing inflationary pressures and rising member demand for loans. A lower rate ceiling could constrain small and mid-sized credit unions, particularly those serving low-income borrowers or specialized fields of membership.
The NCUA is expected to review the loan rate ceiling again before the current extension expires on March 10, 2026.
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