WASHINGTON—The House has passed its version of the fiscal year 2021 spending package, which included $273.5 million for the Treasury's Community Development Financial Institutions (CDFI) Fund and $2 million for the NCUA's Community Development Revolving Loan Fund (CDRLF).
The spending package also included a provision that would create a pilot program for postal banking, a move that NAFCU, CUNA and several other financial services trade organizations oppose.
Ahead of the vote, both CUNA and NAFCU urged lawmakers to support additional funding for the CDFI Fund and the CDRLF, which are used by credit unions to support low-income communities.
In addition, NCUA Board Member Todd Harper has on several occasions called for at least $10 million more for grants in 2020, as the NCUA is unlikely to have enough funding to meet heightened demand due to the pandemic.
FFIEC Issues Statement
Separately, the Federal Financial Institutions Examination Council, of which NCUA is a member, has issued a statement setting forth "prudent risk management and consumer protection principles" for financial institutions to consider while working with borrowers as initial coronavirus-related loan accommodation periods come to an end and they consider additional accommodations.
According to the FFIEC members, the "COVID event has had a significant adverse impact on consumers, businesses, financial institutions, and the economy. To address some of these impacts, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides several forms of relief to business and individual borrowers, and some states and localities have taken action to provide similar credit accommodations. Also, many financial institutions have voluntarily offered other credit accommodations to their borrowers."
The FFIEC added that as initial loan accommodation periods come to an end, some borrowers may be able to resume contractual payments, and others may be unable to meet their obligations due to continuing financial challenges. The agencies encourage financial institutions to consider, when appropriate, prudent options for additional accommodations that can ease cash flow pressures on affected borrowers, improve their capacity to service debt, and facilitate the financial institution’s prudent management of its loans, consistent with applicable laws and regulations.
In addition to NCUA, the Council consists of the following six voting members: a member of the Board of Governors of the Federal Reserve System; the chairman of the Federal Deposit Insurance Corp.; the director of the Consumer Financial Protection Bureau; the Comptroller of the Currency, and the chairman of the State Liaison Committee.