WASHINGTON—Ahead of a House Financial Services Committee oversight hearing to review the Treasury Department and Federal Reserve's response to the coronavirus pandemic, NAFCU shared how credit unions are working to assist their members and outlined areas where additional relief is needed.
Both Treasury Secretary Steven Mnuchin and Federal Reserve Board Chairman Jerome Powell appeared before the committee.
"Credit unions are keenly aware of the hardships their members are facing due to the COVID-19 pandemic and are working with them during these times of economic uncertainty," noted NAFCU Vice President of Legislative Affairs Brad Thaler. "As we have shared with you before, credit unions have voluntarily implemented programs to protect their members’ financial health, including skipping payments without penalty, waiving fees, low or no-interest loans, loan modifications and no interest accruals."
Support for Legislation
In the letter, Thaler reiterated NAFCU's support of legislation that would provide credit unions with much needed relief, including the Paycheck Protection Small Business Forgiveness Act (H.R. 7777).
Thaler also shared key provisions of the CARES Act that credit unions would like to see extended and or modified, including issues related to:
- The Paycheck Protection Program
- The NCUA's central liquidity facility
- Troubled debt restructurings
- Deposit insurance
- The current expected credit loss (CECL) accounting standard
- Credit union capital flexibility