ARLINGTON, Va.–The ever-expanding shutdown of large parts of everyday business and life as the result of coronavirus COVID-19 has credit unions raising numerous operational and compliance questions.
Carrie Hunt, EVP and general counsel with NAFCU, said the association has been fielding numerous queries from its member CUs over issues such as conducting in-person annual meetings vs. virtual meetings, as well as over whether certain branches need to be closed.
With the annual meetings, for instance, Hunt said the questions include whether the virtual annual meeting can substitute for the in-person event, and whether notices must be sent.
Branch closure questions have become relevant in states where the government has ordered no gatherings of more than 50 people. CUs are questioning whether that also applies to branches or other facilities where more than that number of people are employed.
NAFCU has also fielded questions around the closing of loan documents and related disclosure and timing issues, Hunt said.
Hunt said NAFCU has been in contact with NCUA on all of those questions and others.
Economic Consequences
Separately, Hunt said NAFCU shares concerns about COVID-19’s effect on the economy, but said credit unions are well-prepared.
“It is a positive that credit unions are well capitalized,” said Hunt. “We will see what is next over the next few months. But credit unions are well positioned. We want to make sure they have the tools they need and we are talking to regulators about that.”