The Inspector General of the Small Business Administration warned that during the earlier Paycheck Protection Program lending, businesses on a Treasury Department “Do Not Pay” list were approved for $3.6 billion in loans. It is not clear how much of the money was actually distributed.
The National Credit Union Administration will begin accepting applications on Jan. 24 for federally insured, low-income credit unions that want to use the agency’s streamlined qualification process to be certified as Community Development Financial Institutions.
The new Paycheck Protection Program starts with initial lending limited to businesses who have not received a PPP loan and lending going through Community Development Financial Institutions, Minority Depository Institutions, certified development corporations and microlenders. After a few days the lending options open further.
The agenda for the January board meeting of the National Credit Union Administration has been released. On the agenda is a rule on Risk-Based Net Worth, an Advance Notice of Proposed Rulemaking on the simplification of Risk-Based Capital Requirements, a proposed rule on CUSOs, a notice of proposed rulemaking on the CAMELS rating system and the agency’s annual performance plan.
A controversial Consumer Financial Protection Bureau task force on consumer financial law released its final report the day before a hearing about its makeup was to be held in a federal court in Massachusetts. Credit unions will like its recommendation that all credit unions be allowed to serve underserved areas. Consumer groups will object to many of the other recommendations and it is unlikely the Biden Administration will accept them.
Seila Law had challenged the constitutionality of the structure of the Consumer Financial Protection Bureau and won in the Supreme Court. The Supreme Court returned the issue of the legality of the actions against Seila Law back to the appellate court. The CFPB just won that portion of the case in the 9th Circuit Court of Appeals.
J. Owen Cole, the National Credit Union Administration’s associate director in the Policy and Markets Division in the Office of Examination and Insurance, has announced he will retire at the end of the month.
Treasury Secretary-designate Janet Yellen met with representatives of Community Development Financial Institutions and Minority Depository Institutions and made a commitment on behalf of the Biden Administration to support the program.
Republican Chairman Rodney Hood and fellow Republican Kyle Hauptman approved the NCUA 2021-2022 budget over the vehement opposition of Democratic member Todd Harper. Harper wanted additional staff to perform consumer protection exams. He also does not think the agency is preparing enough for the economic fallout that will come from the pandemic.
At the first meeting since Kyle Hauptman was sworn in as a member of the National Credit Union Administration, the board approved an interim final rule on overdrafts and a proposed rule on mortgage servicing. It also approved a change to its Multiple Common Bond credit union rule that board member Todd Harper believes violates the Federal Credit Union Act.