July 30, 2021

4 things to know this week

CapitolNAFCU's widely-read NAFCU Today is credit union leaders' go-to source for the latest on issues impacting the credit union industry. For those short on time, here's a roundup of this week's top need-to-know updates and resources.

SBA revamps PPP forgiveness process

The SBA has announced an interim final rule (IFR) that makes three changes to the paycheck protection program (PPP) forgiveness process, including:

  • allowing lenders to use a COVID Revenue Reduction Score at the time of forgiveness to document the revenue reduction of a second draw PPP loan;
  • establishing a Direct Loan Forgiveness Portal;
  • extending the loan deferment period for PPP loans where the borrower timely files an appeal of a final SBA loan review decision with the SBA Office of Hearings and Appeals.

The SBA will provide additional guidance on the use of the COVID Revenue Reduction Score and direct borrower forgiveness process. The IFR became effective July 28; comments are due to the SBA 30 days after publication in the Federal Register. NAFCU will review the IFR and provide credit unions with updates via NAFCU Today.

CFPB report reveals credit applications have mostly returned to pre-pandemic levels

In a new issue brief released Tuesday, the CFPB found applications for auto loans, new mortgages, and revolving credit cards had mostly returned to pre-pandemic levels by May 2021. The report also provides state-by-state analysis of the change in credit applications for auto loans, new mortgages, and revolving credit cards and reveals wide geographic variability in the demand for auto loans. View the full issue brief.

CDC's eviction moratorium scheduled to expire tomorrow

The CDC's eviction moratorium is scheduled to expire July 31 following the U.S. Supreme Court's decision in June. The CDC issued the order last year and has extended it several times.

Of note, according to the Wall Street Journal, President Joe Biden has asked Congress to authorize an extension of the moratorium. Legislation was unveiled in Congress yesterday to extend the moratorium until December 31, 2021, but it is unclear when Congress may act on it. Currently, federal regulators, including the FHFA, have eviction moratoria in place.

CFPB releases online tool to help renters, landlords access federal assistance

The CFPB Wednesday released a new online tool to help renters and landlords impacted by the coronavirus pandemic easily find and apply for payment assistance for rent, utilities, and other expenses. The Rental Assistance Finder will connect renters and landlords with state and local programs that are distributing billions of dollars in federal assistance to help renters stay housed during the pandemic.