WASHINGTON–As the coronavirus COVID-19 threat spreads across the economy, credit unions have been in ongoing discussions on Capitol Hill and with regulatory agencies on everything from expanded funding for emergency loans to new legislation and even to potentially raising deposit insurance coverage.
Ryan Donovan, CUNA’s chief advocacy officer, said on Capitol Hill there has been strong interest in knowing what credit unions and other industries are doing in keeping their employees safe and how they are being affected from a non-HR perspective. In addition, legislators have sought input on whether lenders have sufficient leeway to make various accommodations, such as for loan waivers.
As CUToday.info reported here, Donovan noted CUNA has already sent separate letters to both NCUA and the CFPB on steps the group wants both to take.
“I would characterize that as our first formal interactions during the crisis,” he said. “They shouldn’t be viewed as the only thing credit unions are going to need in this crisis.”
Multiple Meetings
Donovan said CUNA over the weekend had multiple meetings and calls with the authorizing committees in the House and Senate and in some cases even sent some legislative language CUNA would like to have considered. The trade group is also sending additional letters to the House Financial Services Committee and the Senate Banking Committee.
The House has passed on a 363-40 vote the Families First Coronavirus Response Act to bolster the federal government’s response. That legislation is in addition to an $8.3 billion emergency package the president has already signed into law.
Other pieces of stimulus legislation are also in the works with various components, such as extending unemployment insurance, SNAP access, and medical leave. Donovan said CUNA is reviewing the refundable tax credit related to medical leave for its applicability to credit unions.
“We expect there to be several legislative vehicles to deal with the virus and recovery. There are going to be a number of opportunities to address impediments,” he said. “Our concerns can be placed into two buckets: Things we need right now and the things we need to think about as we get into a post-crisis recovery.”
The Short & Long Term
As CUToday.info has also reported, in the short term CUNA is asking Congress to increase the Community Development Revolving Loan Fund (CDRLF) program funding level to $3 million and to increase the CDFI Fund to $300 million.
CUNA is also considering working with Congress on legislation that would allow CUs more flexibility under the Member Business Loan cap.
Other Steps, Discussions
Other points touched on by Donovan:
- CUNA has asked NCUA for guidance on virtual board and membership meetings and expects it soon.
- Donovan said “one point I have emphasized with the agency is if they get to a place where they don’t believe they can provide credit unions some flexibility and statutory changes are required, it’s better to know sooner rather than later so we can work with Congress.”
- CUNA has asked NCUA to provide capital forbearance as credit unions offer loan modifications and skip-a-payment options. “We want CUs to—in the spirit of safety and soundness—not experience any undue examiner scrutiny as result of necessary actions,” he said.
- CUNA is considering a letter to the CFPB to address requirements under the TRID regulation, specifically the three-day closing disclosure requirement. “As we experience more and more social distancing, that may be harder to comply with,” Donovan said.
- CUNA has heard some concerns from credit unions around BSA/AML and what “emergency declaration” means, and it is seeking guidance from FinCEN.
- Donovan said CUNA has heard from some credit unions that believe it would be prudent to increase NCUSIF deposit coverage beyond $200,000 per account.
- CUNA has initiated its Member Activation with credit unions to improve communications. That includes sharing some best practice template communications credit unions can use in communicating with their own communities and members.