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NAFCU reiterates call for CU tools, flexibilities ahead of HFSC hearing
NAFCU's Brad Thaler Monday offered the credit union perspective ahead of a House Financial Services Committee hearing to examine the Treasury Department and Federal Reserve's pandemic response. Thaler called for the extension of several tools and flexibilities that will allow credit unions to continue to support their members and communities amid the coronavirus pandemic and beyond.
The hearing is set to begin at 12 p.m. Eastern today and can be viewed via live webcast.
In the letter sent Monday, Thaler, NAFCU’s vice president of legislative affairs, highlighted several ways in which credit unions have stepped up to help their communities amid the crisis and again reiterated additional measures to support these efforts, including:
- capital flexibility under the Federal Credit Union (FCU) Act similar to what banks were provided in the CARES Act;
- additional investment authorities for federal credit unions;
- relief under the member business lending (MBL) cap;
- extending credit unions' loan maturity limits under the FCU Act;
- allowing all credit unions to add underserved areas to their fields of membership;
- modernizing the E-SIGN Act; and
- protecting credit unions with liability protections.
In addition, Thaler urged the committee to consider expanding or extending several key provisions from past relief efforts, which include:
- changes to Small Business Administration’s (SBA) paycheck protection program and 7(a) loan program;
- deposit insurance;
- access to the NCUA's Central Liquidity Facility (CLF); and
- relief from the current expected credit loss (CECL) standard.
Thaler also noted that some provisions have been proposed that, although well-meaning, may have unintended consequences and could place new hardships on credit unions.
Relatedly, Treasury announced Monday that the next batch of economic impact payments (EIPs) will continue to be issued this week through paper check or prepaid debit card. Direct deposit payments will have an official pay date of Wednesday, March 24; paper checks or prepaid cards may take a few weeks to arrive by mail.