2-month PPP extension signed into law; SBA issues 2nd procedural notice on PPP hold, error codes
President Joe Biden Tuesday signed into law legislation to extend the paycheck protection program's (PPP) loan application deadline to May 31 and allow the Small Business Administration (SBA) to continue processing pending applications until June 30. In addition, the SBA issued a second procedural notice to provide guidance related to hold codes on first-draw paycheck protection program (PPP) loans and other error messages.
NAFCU has raised concerns about the amount of loans backlogged due to hold codes and has called on the SBA to clear the codes before the program ends. The association has also highlighted improvements needed for a smoother approval and forgiveness processes.
The procedural notice, issued Monday, highlights that the agency is now using a machine learning scoring model that allows automated dispositioning of first draw loans with hold codes that are minimal risk of non-compliance, fraud, or abuse in hopes of reducing the amount of hold codes.
Lenders are still asked to clear hold codes through lenders' certification as outlined in the SBA’s first procedural notice on this topic until the new model is fully deployed. In addition, the procedural notice updates the lender certification method for Table 1 holds. The SBA has noted it is allowing lenders to resolve hold codes or compliance check error messages by obtaining a written borrower certification that must be signed under penalty of perjury and must attest to the accuracy of the certification and supporting documentation – alleviating the burden placed on lenders to certify certain information.
The association has previously asked for the SBA to take a holistic approach to the review of PPP loans when determining whether there is an indication of risk or fraud, rather than arbitrarily reviewing loans.
NAFCU will continue to advocate for program improvements and transparent guidance to ensure credit unions can lend effectively through the PPP. Access the association's PPP FAQs here.
Management & Operations
Add to Calendar 2021-06-15 14:00:00 2021-06-15 14:00:00 BSA Training for Staff The Bank Secrecy Act (BSA) continues to be an area drawing increased scrutiny from examiners. Credit union staff need to understand the purpose of the BSA and its requirements. This webinar will address key components of BSA, Anti-Money Laundering (AML) and Office of Foreign Asset Control (OFAC) and address compliance requirements for your credit union. Key Takeaways Understand the basic requirements of the BSA Develop tools to help your credit union address member identification and due diligence Review the basic requirements of Office of Foreign Asset Control (OFAC) Discuss reporting and record-keeping Purchase Now$295 Members | $395 Nonmembers (Additional $50 for CD) One registration gives your entire credit union access to the on-demand recording until June 15, 2022.Already registered? Go to the Online Training Center to view live. Who Should Attend? NAFCU Certified Compliance Officers (NCCOs) NAFCU Certified Risk Managers (NCRMs) Compliance staff Legal staff HR staff Education Credits NCCOs will receive 1.5 CEUs for participating in this webinar. NCRMs will receive 1.5 CEUs for participating in this webinar. NCBSOs will receive 1.5 CEUs for participating in this webinar. CPA credit information is below; recommended 1.5 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Associate Director of Education, NAFCU Learning Objectives: Understand the basic requirements of the BSA. Develop tools to help your credit union address member identification and due diligence. Review the basic requirements of Office of Foreign Asset Control (OFAC). Discuss reporting and record-keeping. Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.5 credits Recommended Field of Study: Regulatory Ethics - Technical National Association of Federal Credit Unions (NAFCU) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Learn more. About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, D.C. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU email@example.com America/New_York public
Credits: NCCO, NCRM, NCBSO, CPE
Add to Calendar 2021-06-15 14:00:00 2021-06-15 14:00:00 CU Case Study: Growing Your Consumer Loan Portfolio and Gaining New Members About the Webinar According to the NCUA, credit unions experienced a 20% annual increase in total deposits in 2020. Meanwhile, current economic conditions have credit unions struggling to find qualified member borrowers, leading to a capital surplus without viable investment options. To buck the trend, many credit unions have partnered with fintech companies to grow their consumer loan portfolio by finding more creditworthy borrowers and gaining new members. Discover how your credit union can tap into this opportunity to quickly increase consumer lending to more creditworthy borrowers with minimal upfront costs. In this webinar, Brent McCoy, Vice President of Credit Administration, KEMBA Financial Credit Union, will share how KEMBA is putting its cash to work to grow its consumer loan portfolio while gaining new members. 3 Key Takeaways: Learn how KEMBA Financial Credit Union originates loans digitally as a complement to its existing offerings to acquire more borrowers, without disrupting its branch network or processes. Discover how KEMBA Financial Credit Union maintained control of its risk profile and monitored loan performance during the pandemic. Learn how credit unions can use sophisticated machine learning models to more accurately identify risk and approve more applicants than traditional, credit score-based lending models. Watch the Webinar On-Demand Web NAFCU firstname.lastname@example.org America/New_York public
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