Credit union trade groups are joining National Credit Union Administration Chairman Todd Harper in urging Congress to make permanent the temporary changes that the House and Senate made to the agency’s Central Liquidity Facility during the pandemic.
The National Credit Union Administration’s Share Insurance Fund’s equity ratio is expected to dip to 1.22% by the end of June, but the agency board decided Thursday not to require the development of a fund restoration plan.
That plan would have been legally required if the equity ratio had dipped to 1.20% and could have included charging credit unions a premium.
National Credit Union Administration Chairman Todd Harper asked the House Financial Services Committee Wednesday to push legislation that would give the agency more flexibility to impose premiums to shore up the agency’s Share Insurance Fund.
National Association of Federally-Insured Credit Union President/CEO B. Dan Berger on Tuesday asked the National Credit Union Administration board to finalize several proposed rules even though board Chairman Todd Harper has made it clear he opposes them.
The House Financial Services Committee has given an early indication that it may consider legislation that would allow credit unions to expand their fields of membership into underserved areas.
The legislation has not been introduced yet, but it is listed among the draft bills that the committee may discuss at a Wednesday hearing that features financial regulators, including National Credit Union Administration Chairman Todd Harper. The legislation has long been sought by credit union trade groups.
The Small Business Administration’s Paycheck Protection Program has run out of money for loans that most credit unions and banks would make, but PPP loans are still available through Community Development Financial Institutions, an SBA spokesperson said Wednesday.
Despite efforts by financial industry and consumer groups to reverse the policy, the third round of Economic Impact Payments to individuals may be seized by states and creditors, a Biden Administration official has told senators.
“After a payment in the third round of EIPs is deposited into an individual’s bank account, federal law does not protect that amount from state offsets or from garnishment by creditors,” Aruna Kalyanam, the Treasury Department’s deputy assistant secretary for tax and budget in the Office of Legislative Affairs, wrote in a letter to Sens. Joe Manchin (D-W.V.) and Maggie Hassan (D-N.H.).
Saying that the National Credit Union Administration’s current rule governing Credit Union Service Organizations is sorely outdated and hampers innovation, the two national credit union trade groups are calling on the agency board to finalize an updated regulation.
The NCUA has proposed a rule that would expand CUSO lending authority by allowing the organizations to originate any loan that may be made by a federal credit union.
The National Credit Union Administration board did not issue its regularly scheduled update of the equity ratio at this month’s board meeting. Instead, according to Chairman Todd Harper, they will continue to analyze the equity ratio and will review the first quarter Call Reports. This is just one of the issues addressed at the NCUA April board meeting.
The House Small Business Committee held a hearing on the Small Business Administration’s oversight of Paycheck Protection Program. The SBA is trying to mitigate fraud in the program.