WASHINGTON—The House this week heard from credit unions regarding the needs of the industry during the pandemic.
Representatives from NAFCU-member credit unions joined members of the association's advocacy team to speak with House Financial Services Committee Consumer Protection and Financial Institutions Subcommittee Chairman Ed Perlmutter (D-CO).
During the videoconference meeting, the group discussed a number of key topics, including small business lending and increased liquidity at credit unions amid the coronavirus pandemic.
Leadership from Colorado credit unions – including Partner Colorado Credit Union CEO Sundie Seefried and President and CFO Doug Fagan, and Air Academy FCU President and CEO Glenn Strebe – attended the meeting alongside NAFCU President and CEO Dan Berger, Executive Vice President of Government Affairs and General Counsel Carrie Hunt, Vice President of Legislative Affairs Brad Thaler, and Associate Director of Legislative Affairs Sarah Jacobs.
Specific Proposals
During the meeting, the group repeated NAFCU’s call for additional tools and flexibility needed to deal with liquidity and capital issues at credit unions following the surge of deposits at financial institutions during the pandemic. Thaler offered several proposals to address these concerns in a letter to the House Financial Services Committee earlier this month, including:
- Capital flexibility under the Federal Credit Union Act similar to what banks were provided in the CARES Act
- Relief under the member business lending (MBL) cap
- Extending credit unions' loan maturity limits under the FCU Act
In addition, the group discussed the need for additional investment authorities for credit unions amid the pandemic to allow them to better manage the influx of deposits and ultimately provide more products and services to members.