WASHINGTON—Ahead of a House Financial Services Committee hearing to examine the Treasury Department and Federal Reserve's pandemic response, NAFCU’s Brad Thaler called for the extension of several tools and flexibilities to allow credit unions to continue to support their members and communities.
In the letter, Thaler, NAFCU’s vice president of legislative affairs, pointed to ways in which the trade group said CUs have stepped up to help their communities amid the crisis and again reiterated additional measures are needed to support these efforts.
Among the expanded powers NAFCU is seeking for credit unions:
- Capital flexibility under the Federal Credit Union (FCU) Act similar to what banks were provided in the CARES Act
- Additional investment authorities for federal credit unions
- Relief under the member business lending (MBL) cap
- Extending credit unions' loan maturity limits under the FCU Act
- Allowing all credit unions to add underserved areas to their fields of membership
- Modernizing the E-SIGN Act
- Protecting credit unions with liability protections
Extensions Sought
In addition, Thaler urged the committee to consider expanding or extending several key provisions from past relief efforts, which include:
- Changes to Small Business Administration’s (SBA) paycheck protection program and 7(a) loan program
- Deposit insurance
- Access to the NCUA's Central Liquidity Facility (CLF)
- Relief from the current expected credit loss (CECL) standard
Thaler also noted some provisions have been proposed that, although well-meaning, may have unintended consequences and could place new hardships on credit unions.