Trade Groups Say IRS Coronavirus Payment Process is Confounding Credit Unions, Members

The Internal Revenue Service’s portal to provide information to consumers about their federal coronavirus Economic Impact Payments is providing inaccurate information to many financial institutions and their customers, creating confusion for everyone involved, trade groups said last week.

“The information provided by the portal is often inaccurate, causing confusion for recipients because it is not updated in a sufficiently timely manner, resulting in erroneous messages to recipients,” groups including the Credit Union National Association, the National Association of Federally-Insured Credit Unions, the American Bankers Association and the Independent Community Bankers of America, wrote in a letter to IRS Commissioner Charles Rettig.

VyStar CU President Accuses ICBA of ‘Mischaracterizing’ Bank Purchase

Vystar Credit Union agreed to buy Heritage Southeast Bank. The deal will be the credit union industry’s largest-ever bank acquisition and set off a war of words over the credit union tax exemption. VyStar Credit Union and the Credit Union National Association have a few things to say about the Independent Community Bankers of America’s characterization of the deal.

Comments Mostly Support NCUA’s Risk-Based Net Worth Rule

National Credit Union Administration Chairman Todd Harper thinks the proposed rule is “half-baked” but credit union trade groups are endorsing a proposal to increase the threshold for credit unions to be defined as “complex.” The proposed rule states that any risk-based net worth requirement would only apply if a credit union has more than $500 million in assets at a quarter’s end. The definition impacts the effect of the Risk-Based Capital Rule that goes into effect on Jan. 1, 2022.

Bankers Say NCUA Subordinated Debt Rule Undermines Credit Union Mission

The National Credit Union Administration board’s decision to allow low-income, complex, and new credit unions to issue subordinated debt is another sign that the industry is eroding the mission of the institutions, banking lobbyists charged this week.

“This rule is yet another example of the NCUA pushing the envelope and expanding credit union powers well beyond limits justifying the industry’s tax exemption,” Rebeca Romero Rainey, president/CEO of the Independent Community Bankers of America said Thursday.

The NCUA board approved a final rule Thursday allowing credit unions to issue subordinated debt for purposes of regulatory capital treatment.

A Push for Streamlined PPP Forgiveness; Judge Orders Loan Data Be Made Public

In a letter to congressional leaders, some 100 business groups including the Credit Union National Association, the National Association of Federally-Insured Credit Unions, the American Bankers Association and the Independent Community Bankers of America, call on Congress to enact legislation to forgive all Paycheck Protection Program loans of up to $150,000 using a one-page application. Meanwhile the Small Business Administration is facing a judicial deadline to make information on PPP loans public.

Community Bankers to Continue Anti-Credit Union Campaign in Next Congress

The Independent Community Bankers of America’s anti-credit union campaign will continue in the next Congress.

In its briefing on the impact of the 2020 election, the ICBA said it will continue its “Wake Up” campaign during the 117th Congress. But the trade group said it does not expect any major policy shift in how policymakers view the credit union industry.