Week ahead: NCUA mulls further coronavirus aid for credit unions
The National Credit Union Administration board will discuss efforts to assist credit unions during the coronavirus pandemic during its monthly meeting on Thursday.
The credit union regulator will discuss an interim final rule on the Central Liquidity Facility, a mixed ownership government corporation that is managed by the board. The CLF was created by Congress in 1979 to meet the industry’s liquidity needs. The entity had 278 members at the end of 2019, up eight members from the prior year, according to NCUA's 2019 annual report.
The regulator approved changes to an interim rule regarding the CLF on Monday.
“[W]e were urging NCUA to expeditiously adopt any rule changes to the CLF’s borrowing authority and membership parameters to conform to the CARES Act provision,” Elizabeth Eurgubian, deputy chief advocacy officer at the Credit Union National Association, said during a press call.
Real estate appraisal relief will also be addressed. Last year the credit union regulator voted to approve a proposed rule that would increase the threshold required for residential real estate from $250,000 to $400,000.
NCUA previously raised the threshold for appraisals on commercial real estate transactions.
NCUA announced on Monday that it was committing the majority of the 2020 Community Development Revolving Loan Fund to coronavirus assistance. NCUA pledged an additional $575,000, raising the total aid to nearly $1.4 million for eligible low-income credit unions.
“The NCUA recognizes that federally insured credit unions will face unpredictable challenges and costs as a result of the COVID-19 pandemic,” NCUA Chairman Rodney Hood said in a statement. “The increase in available grant funding will help more low-income credit unions to continue offering quality and affordable financial services to their members and communities.”
Coronavirus stimulus checks are on the way and have already arrived for some Americans. The IRS announced the creation of a website to help Americans track when they can expect their aid to arrive.
More coronavirus aid is currently being considered by Congress. Following last week's failure to secure additional funding for the Small Business Administration's Paycheck Protection Program, the Senate is expected to continue discussions today on what further PPP assistance could look like.