WASHINGTON–CUNA and NAFCU have joined with other trade groups in responding to a letter from a group of senators that encourages actions be taken to assist consumers in the wake of the coronavirus pandemic. Separately, NAFCU has sent a letter to the White House outlining additional relief that would benefit credit unions.
In the joint letter, credit unions and banks said they committed to seeking consumer needs as the pandemic spreads through American communities. “We share your concern about the toll the spread of this disease is taking on customers, communities and the broader economy,” the letter reads. “At this time of significant challenge to the nation, we can report that banks and credit unions across the country are stepping up to help those affected,” the letter said. “We are in the business of serving customers, especially when an unexpected hardship strikes.
“Banks and credit unions are prepared to assist by offering a variety of services to individual borrowers and small business owners alike, including but not limited to fee waivers; deferred payments for credit cards, auto loans and mortgages; loan modifications; low-rate and zero-rate loans and other accommodations,” the trade groups continued.
The letter further emphasizes the importance of regulatory agencies continuing to work with financial institutions to assist borrowers, and thanks regulators for their proactive and responsive efforts so far.
The letter can be found here,
The senators who sent the letter include Mark Warner (D-VA), Jack Reed (D-RI), Bob Menendez (D-NJ), Elizabeth Warren (D-MA), Brian Schatz (D-HI), Chris Van Hollen (D-MS.), Catherine Cortez Masto (D-NV) and Doug Jones (D-AL).
Letter to White House
Separately, President Trump and National Economic Council Director Larry Kudlow are being urged by NAFCU to provide credit unions with additional relief and support to better serve members impacted by the coronavirus.
The request, which came in a letter from NAFCU President/CEO Dan Berger, offered suggestions to provide relief, including:
- Removing or modifying the cap on member business lending
- Providing capital relief to credit unions
- Raising the 15-year maturity limit on certain credit union loans
- Allowing more credit unions to serve underserved communities
- Modernizing outdate governance provisions in the Federal Credit Union Act
- Providing emergency funding for the Community Development Financial Institutions Fund and Community Development Revolving Loan Fund
- Encouraging financial regulators to provide more relief
Working with administration officials, the House over the weekend passed an emergency package to provide funding for coronavirus relief measures, such as paid sick leave, free testing, food assistance, unemployment insurance, and more. The Senate remains in session to take up the legislation and Senate Majority Leader Mitch McConnell (R-KY) has stated senators on both sides are eager to move quickly.
The congressional leadership has indicated the House will need to consider a technical corrections bill on the package, and additional relief packages are expected in upcoming weeks.