Week ahead: Shutdown has CUs in a pinch

Now well into its third week, the ongoing government shutdown has surpassed the 2013 shutdown as the third-longest government work stoppage in history. And that’s causing problems for financial institutions.

Lenders and borrowers are suspected to feel the economic burden posed by the shutdown. While the Federal Housing Administration is still processing government-backed loans, the agency has halted assisting banks and credit unions in the underwriting process. As a result of the prolonged shutdown, more CUs are putting forth assistance programs to members who aren’t receiving paychecks as a result of the impasse.

Credit union legislative priorities are also at a standstill, since hearings are currently on standby as committee assignments for the new Congress are finalized this week. As a result, it’s likely the majority of credit union-related issues on the docket will be put on the backburner until the government is fully reopened.

And though most hearings are on standby as committee assignments finish up this week within the new Congress, it’s likely that all issues on the credit union docket will be placed on the back burner until the shutdown ends.

ADA victory

What do credit unions and Beyoncé have in common? They’re both being sued for allegedly violating the Americans with Disabilities Act. The good news for CUs, however, is yet another suit was dismissed last week when a federal appeals court threw out a complaint alleging $90 million-asset Department of Labor Federal Credit Union’s site violated the ADA.

The Credit Union National Association noted that last week’s victory is particularly significant for being the industry’s first ADA win at the appellate level, which could potentially set a precedent on subsiding cases within lower circuit courts. CUNA officials added, however, that the plaintiff could still appeal to have the decision overturned.

Lastly, the National Credit Union Administration is set to begin accepting applications for certification as a community development financial institution next week using its new streamlined application process. The certification period will run from Sunday, Jan. 13 through Saturday, Feb. 9.