ARLINGTON, Va.–With much of the Washington agenda remaining in flux due to the coronavirus pandemic, NAFCU is expecting to see the picture becoming clearer by mid-summer on what might be included in any new legislation.
Separately, the trade group is responding to events and developments out of last week’s NCUA board meeting.
NAFCU VP-Legislative Affairs Brad Thaler agreed there has been considerable talk on Capitol Hill around what form any relief/stimulus package might take in the future. Thaler said NAFCU expects to see some sort of legislation in late June or July. While what that legislation might include remains uncertain, he noted additional payments to Americans—such as the $1,200 payments made once already—and aid to states to be at the top of the list.
From NAFCU’s perspective, he said the trade group will continue to advocate for relief from the member business lending cap as one chief priority.
“Credit unions have had small businesses coming into get (Paycheck Protection Program) loans, in some cases becoming members in the process,” he said. “They are going to need additional loans through the recovery, and we want to ensure credit unions have the capacity and aren’t limited by an arbitrary cap.”
Response to NCUA Actions
Beyond Congress, Thaler said NAFCU will continue to work with NCUA to provide additional Prompt Corrective Action (PCA) relief if needed. As CUToday.info reported, the agency’s board approved a measure last week that addresses PCA-related problems created by an inflow of deposits that drives down net worth.
Ann Kossachev, director of regulatory affairs with NAFCU, said the group was pleased to see the agency move forward with the change on PCA, which is in effect through year-end.
NAFCU was less pleased to see an interim final rule on overdrafts that was put forward by NCUA Chairman Rodney Hood was defeated and tabled.
‘Disappointed’ in Vote
“Unfortunately, we had hoped to see overdrafts addressed,” said Kossachev, “at the very least to give credit unions a little flexibility to work with members. Credit union members need more opportunities to help members correct negative balances. We were disappointed to see it not pass, but we do understand why some would want to see an open comment period.
NAFCU also continues to work with NCUA on CECL relief and exam flexibility.
“NCUA does seem to be taking some positive steps, starting with the virtual exams,” said Kossachev. “It seems to be working OK and it’s a good time to push forward on exams.”