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5 things to know this week
NAFCU'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 news, including NAFCU's efforts to obtain PPP relief, an update on the CFPB's CUAC, and more.
NAFCU, trades urge PPP relief
NAFCU Thursday joined a number of trade associations to urge House and Senate leadership to pass both the House and Senate versions of the Paycheck Protection Small Business Forgiveness Act – S. 4177 and H.R. 7777 – to improve and streamline the paycheck protection program (PPP) forgiveness process.
"Now that the program has ended, small business owners are facing the challenges of reopening local economies in a time of uncertainty, retooling their businesses, and working to protect the health of both customers and employees," wrote the group. "Small businesses across the country are facing the time-consuming and costly process of applying for PPP loan forgiveness."
NAFCU has consistently advocated for credit unions' ability to lend effectively through the program and has worked with the SBA, Treasury, and Congress to obtain additional guidance and relief for lenders through the loan forgiveness processes. For more information on the PPP, access NAFCU’s regularly updated FAQs.
CUAC gets update on CFPB taskforce, new members announced
The CFPB's Credit Union Advisory Council (CUAC) met Tuesday and were briefed on the bureau's Taskforce on Consumer Financial Law by CFPB Director Kathy Kraninger.
Kraninger indicated that the taskforce has met with stakeholders and trade groups, as well as held a public hearing and published a request for information as it works to identify areas of improvement.
In a previous letter to the taskforce, NAFCU outlined several areas ripe with opportunities to expand access and alleviate regulatory burdens, including fintech, consumer lending, data security, data collection, and consumer protections.
In addition, the CFPB released new appointments for its advisory boards. Two of the CUAC's newest members are from NAFCU-member credit unions:
- Monica Davis, senior vice president risk management, Union Square Credit Union (Wichita Falls, Texas); and
- Jose Iregui, vice president of loan servicing and collections, Langley Federal Credit Union (Newport News, Va.).
NAFCU further details GSE capital requirement concerns
The Federal Housing Finance Agency (FHFA) Monday held a public listening session – focused on affordable housing access – to gather feedback on its on its proposed rule to set capital requirements for the government-sponsored enterprises (GSEs).
During the session, NAFCU Senior Regulatory Counsel Elizabeth LaBerge shared additional insights into the association's concerns and shared credit union feedback about the proposed capital requirements.
"As drafted, the re-proposal would likely establish capital levels that exceed the worst-case loss scenarios developed by the Federal Reserve," warned LaBerge. "The potential harms of setting capital levels too high are significant for credit unions and their members."
VA issues guidance on forbearance
The Department of Veterans Affairs (VA) Monday issued guidance on loss mitigation options for borrowers who have entered into forbearance under the CARES Act. Under the new guidance, servicers are permitted to defer forborne payments for borrowers who are able to resume making timely monthly payments. The payments may be deferred to the loan maturity date or until a borrower refinances the loan, transfers the property, or otherwise pays off of the loan, whichever occurs first, without any additional fees or penalties.
The VA advises that when applying this deferment, servicers should not modify the loan term. NAFCU has been working with the VA and Ginnie Mae on loss mitigation options for servicers and will continue to monitor guidance as it becomes available.
Hackers going to hack
The FBI is warning organizations about an increasing number of credential stuffing attacks that have targeted networks and led to breaches and financial losses. According to a report from ZDNet, the FBI last week sent a private security alert to the US financial sector.
Credential stuffing refers to an automated attack where hackers take collections of usernames and passwords that have previously leaked online and try them against accounts at other online services.
In the alert, the FBI highlighted that some of the attacks have been large enough to bring down authentication systems at some financial organization. As a leader in calling for national data security standards, NAFCU has many resources available to ensure credit unions can effectively identify and address cybersecurity concerns.