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Massachusetts’ credit unions will now have expanded opportunities for mortgage lending after the governor signed a bill yesterday that modernizes credit union laws.

The state’s credit unions will no longer face a 100-mile limit on real estate loans and will be able to participate with other financial institutions on mortgage loans, two of several provisions included in the legislation signed Tuesday by Gov. Charlie Baker.

The legislation was supported by the Cooperative Credit Union Association, the trade group for Massachusetts’ credit unions. The organization had been advocating for some version of the changes for more than four years, noting that credit union laws had not been updated since 1990. About one-quarter of the provisions are technical in nature, the CCUA said in its summary of the bill’s provisions.

“The bill … is the most important and comprehensive enhancement to the MA state charter in over 30 years,” the CCUA said in a statement today.

CCUA President and CEO Ron McLean said in a statement last week after the state legislature passed the bill as part of its extended 2019-2020 legislative session that the changes would strengthen credit unions.

“The credit unions of Massachusetts appreciate their lawmakers’ recognizing the importance of credit unions to their communities,” McLean said. “This legislation enhances credit unions on many fronts and makes it possible for them to help even more Massachusetts families gain the financial stability needed to achieve their dreams.  It is especially helpful in strengthening Massachusetts credit unions ability to further assist their members through the pandemic and beyond.”

The section of the legislation that allows credit unions to participate on mortgage loans with banks and other financial institutions was negotiated with the banking industry, according to the CCUA’s summary of the bill.

Because credit unions are not-for-profit organizations, the banking industry nationwide has often opposed moves that banks consider as giving credit unions competitive advantages.

The new legislation will also make mergers between a Massachusetts state-chartered credit union and a federally chartered credit union easier, with either organization allowed to survive. Other provisions of the law reduce the minimum number of board members from nine to seven and makes credit committees optional. The legislation also addresses changes brought about by technology.

Baker on Tuesday also signed a bill that changes some of the powers for the Massachusetts Credit Union Share Insurance Corporation, the state organization that provides insurance on excess deposits above the $250,000 threshold insured by the National Credit Union Administration. The CCUA supported this bill as well.

Provisions in this legislation include expanding the size of the MCSIC board to 15 directors, with three or four outside directors and between six and 11 directors from member credit unions.