TDR flexibility, more CU relief included in Senate-passed Phase 3 coronavirus package
The Senate tonight passed the Phase 3 coronavirus relief package – the CARES Act – which includes several provisions that will provide flexibility and relief to credit unions. NAFCU has been aggressively lobbying Capitol Hill to ensure lawmakers understand what credit unions need in order to serve their members and communities as the coronavirus introduces challenges.
"NAFCU has been hard at work on Capitol Hill amid the COVID-19 pandemic advocating on behalf of credit unions and their members, and we appreciate the Administration and Congress taking action in response to our advocacy efforts,” said NAFCU President and CEO Dan Berger. "Today's Senate passage of the CARES Act includes many victories for credit unions that will provide needed flexibility and relief as the industry proactively works to help our local communities recover economically.
"However, there is no doubt that other provisions in this legislation will prove difficult for some credit unions to implement, but credit unions will continue to do what they do best: Serve their members. NAFCU is proud to stand alongside credit unions as they help their 120 million members get through this uncertain time. To this end, NAFCU will continue to advocate for important relief measures that will help credit unions overcome the impact of COVID-19," added Berger.
A win for credit unions in this package is flexibility for the NCUA in dealing with troubled debt restructurings (TDRs). NAFCU's advocacy team has long been involved with ensuring this issue was taken up in Congress as its member credit unions raised concerns about the regulatory burden if the exclusion was not granted.
Other notable wins in the bill include:
- an adjustment to the definition of eligible institutions – for which NAFCU had advocated – to ensure credit unions are eligible for new Small Business Administration (SBA) programs;
- several enhancements to SBA offerings, including a direct appropriation for $349 billion for guaranteed 7(a) loans, a new paycheck protection program, and loan forgiveness;
- some temporary relief in complying with the current expected credit loss (CECL) standard in 2020;
- flexibility for credit unions to access the NCUA's central liquidity facility (CLF); and
- ability of NCUA to provide temporary guarantees for non-interest bearing transaction accounts.
While positive changes were made between drafts of the bill and the final text, NAFCU is concerned about some provisions within the bill that could place new requirements and burdens on credit unions related to borrowers' ability to request forbearance on federally-backed mortgage loans. The association will continue to share how these changes could burden credit unions and work to obtain relief under them.
The House announced it will convene Friday to consider the legislation; the president is expected to sign it once passed.
Stay tuned to NAFCU Today for the latest developments and visit the association's coronavirus resource page.
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 firstname.lastname@example.org 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 email@example.com America/New_York public
Credits: NCRM, NCCO, CPE
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