Newsroom

September 25, 2020

5 things to know this week

Capitol HillNAFCU'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 advocacy against an NCUSIF premium, the Senate's prepping of a vote on the short-term funding deal, and more.

ICYMI: NAFCU fights against NCUSIF premium

NAFCU is leading the call against the NCUA potentially charging a National Credit Union Share Insurance Fund (NCUSIF) premium in 2020 or 2021 to address the fund's falling equity ratio as credit unions see increased share growth. Earlier this week, NAFCU Chief Economist and Vice President of Research Curt Long sent a letter to the NCUA Board outlining alternative relief measures for credit unions to manage large influx of deposits, including additional temporary investment authorities.

While NAFCU supports a strong NCUSIF, the association is opposed to charging credit unions a premium as they work to support members impacted by the coronavirus pandemic. Read Long's full letter of recommendations here.

On track to avert gov't shutdown

The Senate Thursday began the process to soon vote on the deal that would extend federal government funding through Dec. 11. The House passed the measure earlier this week; the Senate must pass the bill and the president must sign it before current funding expires at midnight Wednesday to avert a shutdown. The package includes an administration-sought provision to provide assistance to farmers, as well as $8 billion for pandemic-related nutrition assistance. It also extends the National Flood Insurance Program (NFIP) through Sept. 30, 2021.

After the election, Congress is expected to resume fiscal year 2021 funding efforts. The House has already passed its FY2021 spending package, but the Senate has yet to do so. 

Mnuchin, Powell defend efforts to address COVID-19 impact

During Treasury Secretary Steven Mnuchin's and Federal Reserve Chairman Jerome Powell's second appearance before Congress this week, members of the Senate Banking Committee discussed additional relief to address economic challenges of the coronavirus pandemic and support Americans, especially those in low-income and minority communities. While the House has passed its version of a Phase 4 relief package, the Senate has failed to advance one, including a "skinny" version of Senate Republicans' proposal.

Ahead of the hearing, NAFCU reiterated its call for provisions of the CARES Act to be extended or modified, including for improvements to the PPP and its loan forgiveness process, to provide credit unions with more relief. Mnuchin and Powell shared insights into the paycheck protection program (PPP), other lending programs through the Fed, and the job market. As the PPP had almost $134 billion in funds left after its authorization expired last month, Mnuchin called on Congress to reauthorize the program and allow borrowers hardest hit to receive a second PPP loan, which senators have proposed. He also said he is supportive of a simplified forgiveness process, but wants to ensure appropriate measures for fraud prevention within the program.

CUAC meets again on coronavirus

The CFPB's Credit Union Advisory Council (CUAC) met Wednesday with the bureau's other advisory committee for a broad policy discussion on the CFPB's Unified Regulatory Agenda and general scope of authority. During the meeting, council and bureau representatives explored the impact of the pandemic on consumer education, complaints, and spending habits, as well as other ongoing efforts at the bureau.

Of note, CFPB Director Kathy Kraninger noted the rise in complaints related to payment deferrals. The bureau also shared insights into how legislative and regulatory programs, such as forbearance and economic impact payments (EIPs), have impacted consumers and trends in consumer credit seem to be recovering.

The advisory councils also met last week on the bureau's Taskforce on Consumer Financial Law.

Don't forget to register for NAFCU's Washington update

NAFCU's third quarter member webinar is less than a week away – registration for the complimentary event is required. Credit union members will hear directly from NAFCU President and CEO Dan Berger and leaders of the association's advocacy team on the latest happening in Washington related to the coronavirus pandemic, presidential election, regulatory relief efforts, litigation trends, and more.

The webinar is slated to begin at 4 p.m. Eastern Thursday; attendees can submit questions for the Q&A portion of the webinar during the registration process.