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Although 2020 has been a year of challenges, NAFCU and the credit union industry have achieved several wins as they've worked to obtain a more efficient regulatory environment and better serve the industry's 122 million members amid the coronavirus pandemic. With the presidential election less than a week away, here's a look at key issues and how NAFCU will keep fighting for credit unions.

Advocacy is a key component of NAFCU's mission to strengthen the credit union industry. Credit unions are encouraged to bolster the association's efforts by staying up-to-date on the latest issues that could impact operations and members and in contact with lawmakers to ensure they understand how their decisions impact the industry. NAFCU's Grassroots Action Center allows credit unions to contact representatives and senators directly, as well as learn more about candidates and legislation. The association also has pages dedicated to key issues for more information.

Key advocacy wins

Securing regulatory relief and flexibility for credit unions is a top priority for NAFCU and became even more important during the past nine months as the industry faced operational challenges stemming from shutdowns and social distancing requirements, as well as strategic ones in light of members' financial hardships.

NAFCU's efforts:

• ensured the paycheck protection program (PPP) included credit unions as lenders and secured set-aside funding to meet credit union members' small business loan needs;
• saw lawmakers and regulators seek relief for credit unions under the Financial Accounting Services Board's (FASB) current expected credit loss (CECL) standard;
• secured the Federal Reserve lifting its six-per-month transfer limit on consumers' savings accounts under Regulation D;
• obtained a four-month limit from the Federal Housing Finance Agency (FHFA) on the number of principal and interest payments credit unions must cover on behalf of their borrowers in forbearance for government-backed mortgage loans;
• obtained greater Central Liquidity Facility (CLF) access and flexibility for credit unions to help alleviate liquidity concerns;
• attained troubled debt restructuring flexibility via legislative provisions;
• entered into a partnership with the United States Export-Import Bank to promote small business lending; and more.

See highlights of NAFCU's and credit unions' 2020 accomplishments.

Looking ahead

While negotiations on a possible Phase 4 relief package continue, NAFCU has kept credit union priorities top of mind, including:

• providing relief from credit unions' member business lending (MBL) cap so they can provide more credit to small businesses impacted by the coronavirus pandemic;
• providing emergency funding for the Community Development Financial Institutions (CDFI) Fund and Community Development Revolving Loan Fund (CDRLF) to better serve underserved and lower-income communities;
• modernizing the E-SIGN Act;
• extending several provisions included in the CARES Act related to the NCUA's CLF, troubled debt restructurings, deposit insurance, CECL, and capital flexibility; and
• simplifying the PPP loan forgiveness process for loans under $150,000 and addressing the issue of economic injury disaster loan (EIDL) advances being deducted from a borrower's forgivable PPP amount.

NAFCU is also watching for Congress to address several other issues during the lame duck session:

• Government funding: After passing a continuing resolution to keep the government funded through Dec. 11, Congress is expected to continue spending discussions after next week's election. While the House has passed its fiscal year 2021 spending package, the Senate has yet to do so. NAFCU will advocate for full funding for credit union priorities, as well as caution against House-passed provisions the association is opposed to, such as a pilot postal banking program.
• Bank Secrecy Act (BSA)/anti-money laundering (AML) and beneficial ownership reform: NAFCU joined with dozens of other organizations recently to urge leaders of the Senate and House Armed Services Committees to include BSA/AML and beneficial ownership reforms in the fiscal year 2021 National Defense Authorization Act (NDAA). The groups specifically called for the inclusion of the Corporate Transparency Act – included in the House-passed NDAA – which would create a beneficial ownership registry.
• Defense credit union leases: Another provision of the NDAA NAFCU is engaged on where credit unions have bipartisan support: Rejecting the bank-sought provision – included in the Senate's NDAA but not the House's – that would require the Department of Defense (DoD) to treat banks, including big ones like Wells Fargo and Bank of America, the same as credit unions when it comes to nominal leases on military bases. This provision was also included in the Senate's NDAA last year, but NAFCU successfully kept it from being included in a final version of the bill that resulted from the conference committee.
• NCUA Board nomination: While Senate consideration of Kyle Hauptman's nomination to serve on the NCUA Board could be impacted by the results of the election, NAFCU believes the chamber could consider it on the floor during the lame duck session.

Stay tuned to NAFCU Today for the latest developments out of Washington.