NAFCU to policymakers: 12 key issues for immediate action
As the end of the year approaches, NAFCU's government affairs team remains hard at work to secure even more wins and relief for the credit union industry. To help bolster these efforts, the association is leading the fight for action on 12 key issues that should be addressed in the congressional lame duck session and with regulators in the transition to a new administration.
As credit unions work to serve over 122 million Americans and their communities, acting on these issues now will help them as they respond to the challenges posed by the coronavirus pandemic and economic recovery.
Here is a look at the NAFCU 12; click each issue for more information and the latest:
- Bank Secrecy Act/Anti-Money Laundering (BSA/AML) Reform: Ensure passage of the National Defense Authorization Act (NDAA) that includes long-sought BSA/AML reforms and improve the process for obtaining beneficial ownership information. House Financial Services Committee Chairwoman Maxine Waters, D-Calif., recently announced she had secured this provision in the conference committee's final bill.
- Paycheck Protection Program (PPP) Improvements: Work with Congress to improve the PPP, including reopening the program for struggling member businesses and obtaining additional flexibilities for loan forgiveness, including simplified forgiveness for lower dollar loans and the removal of EIDL advances from counting against forgiveness amounts.
- Prompt Corrective Action (PCA) Relief: Work with the NCUA to ensure the regulatory capital relief in the PCA interim final rule is extended into 2021.
- Relief from Unexpected Share Growth: Obtain relief for credit unions crossing significant asset thresholds as a result of unexpected share growth during the pandemic.
- Extension of Troubled Debt Restructuring (TDR) Relief Provisions: Ensure the TDR relief provisions in the CARES Act are extended into 2021 and additional flexibility is granted where needed.
- Extension of Central Liquidity Facility (CLF) Enhancements: Ensure the CLF enhancements in the CARES Act are extended into 2021 and made permanent where appropriate.
- Capitalization of Interest: Urge the NCUA to quickly finalize its proposed rule removing the regulatory prohibition on capitalizing interest on loan workouts and modifications so that credit unions can more easily assist their members affected by the pandemic.
- Capital Reform: Seek expanded capital flexibilities for credit unions, including urging the NCUA to finalize the subordinated debt proposed rule, modify and delay the risk-based capital (RBC) rule, and obtain additional relief on current expected credit losses (CECL).
- Reevaluation of Qualified Mortgage (QM) Rulemaking: Urge the CFPB to delay the current rulemaking and continue to evaluate the GSE Patch as a permanent solution or, at least, adopt an 18-24 month transition period, to ensure credit unions can continue to lend to their members and access the secondary mortgage market.
- Protect Defense Credit Union Leases: Ensure removal of language from the Senate National Defense Authorization Act (NDAA) that would require the Department of Defense to treat banks and credit unions the same when it comes to leases on military bases in the final version of the NDAA.
- Technical Fixes for Provisions in Tax Cuts and Jobs Act (TCJA): Work with Congress as it considers tax extenders, to provide technical fixes to the TCJA, including addressing the discrepancy between the excise tax on for-profit and not-for-profit executives under the TCJA.
- Provide More Access to Capital for Credit Union Small Business Members: Seek temporary relief from the arbitrary credit union member business lending (MBL) cap for loans to small businesses that are trying to recover from the pandemic. Credit unions have experienced a growth in small business members during the pandemic as many have turned to them for PPP loans. The cap hampers the ability of credit unions to serve them beyond PPP loans as they recover.
Together, NAFCU and its member credit unions achieved some great wins in 2020 and the association remains committed to ensuring a regulatory and legislative environment in which credit unions can grow and thrive. View a few key NAFCU and industry highlights.
Add to Calendar 2021-02-26 14:00:00 2021-02-26 14:00:00 The CDFI Rapid Response Program With the recent COVID-19 relief legislation, unprecedented levels of funding are being directed to underserved communities, especially communities of color. Community Development Financial Institution (CDFI) certified credit unions have a critical role to play in deploying these funds. The CDFI Fund's Rapid Response Program (RRP) opens by February 25th, making available $1.25 billion in grants to CDFIs. This webinar will help you to prepare for the RRP and other CDFI applications. All first-time CDFI Fund grant applicants are urged to attend. Don’t miss this unique opportunity to learn more about how your credit union can tap into these resources for the benefit of the members and communities you serve. CDFI certification is an essential credential for credit unions with a focus on financial inclusion today. If you have never applied for a CDFI grant, don’t miss this critical webinar. Key Takeaways Review updated information about the RRP opportunity and application process Walk through critical first steps to complete before you apply for CDFI Fund grant Register NowRegistration is complimentary, but you must register to attend.One registration gives your entire credit union access to the on-demand recording until February 26, 2022.Already registered? Go to the Online Training Center to view live. Who Should Attend? Chief Executive Officers (CEOs) Chief Lending Officers (CLOs) Business Lending Staff Lending Staff Education Credits This webinar doesn't qualify for any continuing education credits recognized by NAFCU or NASBA. 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
Add to Calendar 2021-02-25 14:00:00 2021-02-25 14:00:00 Fundamentals of Credit Union Subordinated Debt This webinar will cover NCUA’s new rule authorizing the issuance of subordinated debt by natural person credit unions for purposes of regulatory capital treatment. Previously only low-income credit unions could issue subordinated debt that can count toward their net worth requirement. Under the rule, complex credit unions and new credit unions, as well as low-income credit unions, may issue subordinated debt that can count toward their risk-based capital requirement. The webinar will address material terms of the rule and the subordinated debt instrument. We’ll also cover the regulatory approval process, eligible investors, the offering process, reasons to issue subordinated debt and the current interest rate environment. Key Takeaways Understand managing the regulatory approval process. Gain familiarization with key terms of the subordinated debt note. Review the issuance and marketing process. Discuss current market dynamics for credit union sub debt. Purchase Now$295 Members | $395 Nonmembers (Additional $50 for CD)One registration gives your entire credit union access to the on-demand recording until February 25, 2022.Already registered? Go to the Online Training Center to view live. Who Should Attend? NAFCU Certified Compliance Officers (NCCOs) NAFCU Certified Risk Managers (NCRMs) Chief Executive Officers Executive Vice Presidents Chief Financial Officers Education Credits NCCOs will receive 1.5 CEUs for participating in this webinar. NCRMs will receive 1.5 CEUs for participating in this webinar. CPA credit information is below; recommended 1.5 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Associate Director of Education, NAFCU Learning Objectives: Understand managing the regulatory approval process. Gain familiarization with key terms of the subordinated debt note. Review the issuance and marketing process. Discuss current market dynamics for credit union sub debt. Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.5 credits Recommended Field of Study: Finance - Technical National Association of Federal Credit Unions (NAFCU) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Learn more. 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 firstname.lastname@example.org America/New_York public
Credits: NCRM, NCCO, CPE
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