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.

SBA Failed to Inform PPP Borrowers About Loan Offsets: IG Report

In April, the Small Business Administration indicated that SBA Economic Injury Disaster Loan Advances would be treated as grants, but now says the forgiven amount of a Paycheck Protection Program loan must be reduced by the EIDL Advance, causing trouble for both borrowers who owe the money and the lenders who will have the unforgiven part of the PPP loan on their balance sheets. Meanwhile, the SBA’s Inspector General released a devastating report that thousands of ineligible businesses received PPP loans.

In Draft Plan, CFPB Rejects Request to Exempt Credit Unions from Loan Reporting Rule

The Consumer Financial Protection Bureau would not exempt credit unions from the requirement to report lending to women-owned businesses, minority-owned businesses, and small businesses to the agency, according to an initial proposal being circulated by the bureau.

Credit union trade groups have sought a blanket exemption from the reporting required under the Dodd-Frank Act.