WASHINGTON–Whatever plans and hopes credit unions originally had for getting priority legislation through the 116th session of Congress are out the window at this point, as the focus has changed. Now, CUNA is pressing the White House to ensure accomodations are made that ensure credit unions are able to serve their members moving forward.
The credit union agenda, which was already in for a tough fight due the partisan divide in Congress, first found itself being delayed by hearings related to the impeachment of President Trump. Now, the coronavirus COVID-19 pandemic has sidelined nearly the entire congressional agenda.
“The coronavirus has just completely thrown a monkey wrench into the works,” agreed Carrie Hunt, EVP and general counsel with NAFCU. “The response is to move forward day by day, hour by hour.”
The House has passed by a 363-40 vote the Families First Coronavirus Response Act, which is meant to bolster federal government’s response to the coronavirus outbreak. It builds on an $8.3 billion emergency coronavirus spending package the president has already signed into law. The House bill is currently undergoing some technical revisions, while companion Senate legislation has yet to pass..
CUNA Presses White House
Meanwhile, CUNA President/CEO Jim Nussle has sent a letter to the White House requesting that statutory and regulatory accommodations be made to ensure credit unions can continue to meet the financial services needs of their members impacted by the COVID-19.
“More than 2,100 credit unions, serving nearly 46 million members, have a primary field of membership that includes schools, military, health care, police, fire, transportation, utilities and government employees,” Nussle wrote. “These credit unions and others are serving members who are on the front lines of helping to keep others safe during this crisis.”
Given the severity of the crisis and the need for quick action to alleviate consumer financial disruption, CUNA said it is requesting that the administration, federal agencies and Congress:
- Suspend all pending rulemakings — and not propose additional rulemakings - that will not provide regulatory relief for financial institutions at this time.
- Extend the effective dates for recently finalized regulations until 2021.
- Suspend all routine onsite examinations for at least the next 120 days.
- Waive penalizations to credit unions implementing short-term emergency loan programs, skip-a-payment programs, loan modifications, fee waivers and other accommodations.
- Receive permission from the National Credit Union Administration (NCUA) to allow virtual membership and board meetings.
- Suspend the Financial Accounting Standards Board (FASB) implementation of its current expected credit loss (CECL) standard for at least one year, until January 2024.
- Increase appropriations for the Community Development Revolving Loan Fund (CDRLF) and the Community Development Financial Institution Fund (CDFIF).
- Enact legislation to exempt credit union business loans made during federally declared disasters and emergencies from the credit union member business lending cap.
- Enact legislation to exempt government-guaranteed loans made through programs at the Small Business Administration, Department of Agriculture and other agencies from the credit union member business lending cap.
- Allow consumers to waive the rigid requirements related to the specific timing of disclosures (e.g. the three-day closing disclosure requirement) under the TILA-RESPA Integrated Disclosure (TRID) rule.
- Expedite the Consumer Financial Protection Bureau (CFPB) amendment to the Remittance Rule increasing the “normal course of business” safe harbor and make an accommodation for transfers sent to individuals affected by the growing pandemic.
CUNA, NAFCU Collect Stories
Both trade groups are collecting stories of how credit unions are assisting their members that may then be compiled and distributed on Capitol Hill, in addition to being used internally.
“We are gathering member stories on how they are helping members, similar to what we did during the government shutdown,” said Hunt.
CUNA is doing the same. Ryan Donovan, CUNA’s chief advocacy officer, said the trade group has identified more than 2,100 credit union that serve fields of membership that include schools, fire and police, transportation and utility employees and others whose jobs put them on the front lines of the coronavirus.
“But every credit union is being impacted,” said Donovan. “We are in regular contact with all of our members and leagues. We have a survey in the field to get a sense of the steps credit unions are taking to help members. It gives us insights into the concerns and steps being taken, and where regulations and statutes impede credit unions’ ability to serve members.”