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.
Add to Calendar 2021-10-21 14:00:00 2021-10-21 14:00:00 FFIEC IT Examination Handbook Update - Deconstructing the Architecture, Infrastructure & Operations Booklet If you have ever wanted to know what’s new in the Federal Financial Institutions Examination Council (FFIEC) IT Examination Handbook, this is the session for you. In this webinar we will deconstruct the Architecture, Infrastructure & Operations (AIO) booklet by comparing the AIO booklet to the Operations booklet which it replaces. We dig into what’s new to AIO, including how the principles, design and content could impact your credit union during future IT exams. If you are a CISO, ISO, responsible for IT governance, or just want to stay on top of changes to IT regulatory guidelines, this session is for you. Key Takeaways Discover the key differences between the AIO booklet and the Operations booklet it replaces. Identify new principles in the AIO booklet as they relate to IT safety and soundness. Compare and contrast principles and concepts that overlap with the IT Security booklet. Review ideas on how to implement the AIO into your credit union’s Information Security Program. Purchase Now$295 Members | $395 Nonmembers (Additional $50 for CD)One registration gives your entire team access to the live webinar and on-demand recording until October 21, 2022.Go to the Online Training Center to access the webinar after purchase » Who Should Attend? NAFCU Certified Compliance Officers (NCCOs) NAFCU Certified Risk Managers (NCRMS) Chief Executive Officers Chief Financial Officers Chief Information Officers Chief Technology Officers Compliance, risk, and audit titles Education Credits NCRMs will receive 1.0 CEUs for participating in this webinar NCCOs will receive 1.0 CEUs for participating in this webinar CPA credit information is below; recommended 1.0 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Associate Director of Education, NAFCU Learning Objectives: See key takeaways Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.0 credits Recommended Field of Study: Regulatory Ethics – Technical 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
FFIEC IT Examination Handbook Update - Deconstructing the Architecture, Infrastructure & Operations Booklet
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