Washington Credit Union Daily – Reporting on regulations, legislation and political developments affecting credit unions.

Democratic Senators Call Coronavirus Business Immunity ‘Unconscionable’

Senate Republican plans to provide liability immunity to businesses as they reopen following the pandemic are “unconscionable,” 42 senators said this week in a letter to Majority Leader Mitch McConnell (R-Ky.). That is enough senators to make a filibuster of the bill an option.

Financial Trade Groups on Next PPP Legislation: Keep it Simple

Financial trade groups urged lawmakers and federal agencies not to make piecemeal changes to the Paycheck Protection Program if it is reauthorized.

Deshundra Jefferson Named CUNA Chief Strategic Communications Officer

Deshundra Jefferson was appointed this week as CUNA’s chief strategic communications officer.

Despite Pressure to Start Sooner, Fed Says Instant Payment Service Will Launch in 2023 or 2024

The Federal Reserve’s FedNow instant payment system is expected to be launched in 2023 or 2024, even though many in the financial community have urged the agency to implement it sooner.

Sen. Schatz Introduces Legislation to Create CDFI Emergency Fund

Amid signs that federal pandemic assistance funds have not reached businesses that need them the most, Sen. Brian Schatz (D-Hawaii) this week introduced legislation creating a new $2 billion emergency fund for Community Development Financial Institutions. Schatz’s legislation comes as the New York Federal Reserve Bank issued a report showing that Black-owned businesses declined 41%, raising the question of whether relief is reaching the communities that most need it.

Senate Banking Committee Recommends Hauptman Confirmation for NCUA Board

The Senate Banking Committee recommended that the full Senate confirm Kyle Hauptman as a member of the NCUA board. If confirmed by the Senate, Hauptman, a Republican, would replace J. Mark McWatters, also a Republican.

Comptroller Under Fire for Special Bank Charter Proposal

Acting Comptroller of the Currency, Scott Brooks is under fire for seeking feedback on a proposal to offer narrow-purpose bank charters for activities such as payments—a plan that has been blasted as serving special interests, including one that formerly employed him.

Regulators Urge Credit Unions, Banks to Extend ‘Prudent’ Help to Borrowers in Absence of Congressional Action

Congress is deadlocked over economic help for people impacted by the coronavirus crisis, so federal financial regulators and a key senator are urging financial institutions to do what Congress has not been able to do.

Banking Super PAC Narrows Its Favorites List

Friends of Traditional Banking, a super PAC and avowed opponent of credit unions, every two years independently supports two House or Senate candidates. It has narrowed its support down to ten candidates for election year 2020.

IG Report: FHFA Not Ensuring that Mortgage Servicers Tell Borrowers About Forbearance

The Federal Housing Finance Agency is doing nothing to ensure that mortgage servicers inform borrowers of federally backed mortgages that they have a right to forbearance as they deal with the economic impact of the coronavirus crisis, the agency’s Inspector General said this week.

Sen. Warren Calls CFPB’s Kraninger a ‘Miserable Failure;’ Says She Should Resign

The Democratic senator who conceived of the CFPB more than ten years ago told CFPB Director Kathleen Kraninger that the agency is doing little to protect consumers during the pandemic.

Taxi Workers Alliance Pleads with Marblegate to Negotiate Over NCUA Loans

Marblegate Asset Management, the private equity fund that purchased New York City taxi medallion loans from the National Credit Union Administration (NCUA) is so far unwilling to negotiate reasonable settlements with drivers who are unable to repay the money they borrowed from credit unions and banks, according to Bhairavi Desai, executive director of the New York Taxi Workers Alliance.

SBA Inspector General Roasts Agency for Poor Oversight of Economic Injury Disaster Loan Program

In a blistering report, the Small Business Administration’s Inspector General said Tuesday that the agency’s COVID-19 Economic Injury Disaster Loan program is an open door for fraudsters seeking easy money.

Senate Passes Bill to Protect Stimulus Checks from Garnishment

The Senate passed S. 3841, legislation that would protect federal pandemic economic stimulus payments to individuals from garnishment.

CUNA Names Damon Smith as Senior Director of Advocacy and Council

Washington, D.C. attorney Damon Smith has been named the Credit Union National Association’s senior director of advocacy and counsel.

NCUA Board Approves Final Field of Membership Rule at July Board Meeting

The NCUA approved a final Field of Membership rule that allows a credit union to file an application to designate a Combined Statistical Area. In addition, the NCUA board adopted a proposed rule intended to ease the transition to CECL. The pandemic's impact on the agency budget was also discussed at the July board meeting.

Credit Union Trade Groups Continue Push for Coronavirus Liability Protection

The two major credit union trade groups renewed their call to ensure that the next economic stimulus bill includes limited liability protection, even as the issue continued to be a major sticking point in negotiations over the coronavirus crisis response legislation.

Biden: Use CDFIs to Fight Racial Economic Disparities

Presumptive Democratic presidential nominee Joe Biden outlined his plans to attack the racial economic disparities in the U.S, including increasing funding and expanding options for Community Development Financial Institutions.

Democratic Draft Platform: Renew Glass-Steagall, Explore Postal Banking

The Democratic National Committee is scheduled to consider a draft of the 2020 national Democratic platform that calls for an “up-dated and modernized version” of the Glass-Steagall Act, reinvigorating the CFPB, doubling funding for the CDFI program and for an examination of postal banking.

With Lawmakers Stalled, CUNA, NAFCU Continue Economic Stimulus Push

With Congress seemingly stalled on its next economic stimulus measure, the Credit Union National Association and the National Association of Federally-Insured Credit Unions are pushing lawmakers to add things they want in the final bill and to drop things they do not like in the House and Senate measures.

Senate Republican Stimulus Bills So Far Ignore Credit Union Proposals

A summary of the provisions of interest to credit unions in the the Senate Republican pandemic economic stimulus plan, a three-bill legislative package released on July 27, 2020.

Postal Banking Pilot Receives $2 Million in FY21 House Spending Bill

The House passed an FY21 spending measure that would increase CDFI funding by $11.5 million and set aside $2 million for a pilot test of postal banking.

NCUA Exhausts Funding for COVID-19 Emergency Grants

The NCUA has exhausted all available funds for coronavirus crisis urgent needs grants and no new applications will be accepted, agency officials announced.

Former Rep. Barney Frank: Dodd-Frank Has Held Up ‘Pretty Well’

Former Rep. Barney Frank and former Sen. Christopher Dodd reflect on the Wall Street Reform and Consumer Protection Act (also known as Dodd-Frank) at a virtual conference co-sponsored by the Brookings Institution and the University of Michigan.

NCUA Delays Implementation of New Examination Tool, CECL Evaluation

Citing the coronavirus crisis, NCUA Chairman Rodney Hood said Wednesday that the agency will delay implementation of its new NCUA Connect user portal and its Modern Examination and Risk Identification Tool until the second half of 2021. The NCUA also will not begin assessing credit union efforts to comply with the CECL standard until further notice.