Markets Wired

ALEXANDRIA, Va. (March 27, 2020) – National Credit Union Administration Chairman Rodney E. Hood issued the following statement today after the Coronavirus Aid, Relief and Economic Security Act was signed into law by President Donald J. Trump:

“The Coronavirus Aid, Relief and Economic Security Act provides vital economic support and regulatory relief, and will ensure that credit unions play a critical role in the economic recovery following the coronavirus outbreak.

“Most importantly, the act provides the NCUA Board with the power to expand access to and increase the borrowing authority for the Central Liquidity Facility. This will enhance its role as a liquidity backstop for the credit union system.

“Furthermore, the act allows credit unions to provide guaranteed loans to businesses and self-employed individuals through the U.S. Small Business Administration’s paycheck protection program. This will permit credit unions to assist members with payroll, benefits, and other eligible expenses.

“The act provides the NCUA Board with the ability to increase share insurance coverage for noninterest-bearing transaction accounts. I look forward to working with my fellow board members to provide additional coverage for credit union members with applicable accounts that have balances above the current limit of $250,000.

“The act offers relief from accounting requirements and impairments resulting from loan modifications for borrowers affected by the coronavirus pandemic. I am also pleased that Congress provided temporary relief from the implementation of the Financial Accounting Standards Board’s current expected credit losses methodology.”

ALEXANDRIA, Va. (March 27, 2020) – Federally insured credit unions can learn more about the agency’s response to the COVID-19 outbreak by participating in a webinar hosted by the National Credit Union Administration on Tuesday, March 31, beginning at 2 p.m. Eastern.

During the webinar, NCUA staff will also discuss recently issued guidance and changes to the agency’s examination program.

Online registration for this hour-long webinar is now open (opens new window). Registration is limited to no more than 2,500 participants on a first-come, first-serve basis. Participants will be able to log into the webinar and view it on their computers or mobile devices using the registration link. They should allow pop-ups from this website.

Participants may submit questions in advance by emailing [email protected] by Noon Eastern on Monday, March 30. The email’s subject line should read “NCUA Coronavirus (COVID-19) Update.” Because of technological limitations, questions submitted during the webinar cannot be answered.

Please email technical questions about accessing the webinar to [email protected]. This webinar will be closed captioned and archived online approximately three weeks following the live event.

(March 25, 2020) – The Federal Financial Institutions Examination Council continues to monitor and respond to the COVID-19 pandemic to promote the ongoing ability of the nation’s financial institutions to support the households and businesses that depend on them.

FFIEC members, who met as a group yesterday, are actively discussing and identifying appropriate measures, both collaboratively and individually, to maintain safety and soundness while protecting consumers.  Members note that banks and credit unions of all sizes have built up substantial levels of capital and liquidity over the last decade, positioning them well to support the needs of households and businesses.

The members underscore that the financial services sector provides critical services during the pandemic by ensuring the continued availability of financial resources to consumers and businesses.  The members will provide guidance to financial institutions and work with state and local officials on how to identify workers as essential critical infrastructure workers to ensure the security and resilience of the Nation’s critical infrastructure.

The agencies understand that financial institutions may need additional time to submit certain regulatory reports in light of staffing priorities and disruptions caused by the Coronavirus Disease 2019 (COVID-19).  The federal banking agencies will not take action against any institution for submitting its March 31, 2020, Reports of Condition and Income (Call Reports) after the respective filing deadline, as long as the report is submitted within 30 days of the official filing date.  Institutions are encouraged to contact their primary federal regulator in advance of the official filing date if they anticipate a delayed submission.

Agency	Contact	Phone
Federal Reserve	Darren Gersh	202.452.2955
CFPB	Marisol Garibay	202.435.7170
FDIC	Julianne Breitbeil	202.898.6895
NCUA	Evann Berry	703.518.2801
OCC	Stephanie Collins	202.649.6870
SLC	Jim Kurtzke	202.728.5733

(March 25, 2020) – The Federal Financial Institutions Examination Council continues to monitor and respond to the COVID-19 pandemic to promote the ongoing ability of the nation’s financial institutions to support the households and businesses that depend on them.

FFIEC members, who met as a group yesterday, are actively discussing and identifying appropriate measures, both collaboratively and individually, to maintain safety and soundness while protecting consumers.  Members note that banks and credit unions of all sizes have built up substantial levels of capital and liquidity over the last decade, positioning them well to support the needs of households and businesses.

The members underscore that the financial services sector provides critical services during the pandemic by ensuring the continued availability of financial resources to consumers and businesses.  The members will provide guidance to financial institutions and work with state and local officials on how to identify workers as essential critical infrastructure workers to ensure the security and resilience of the Nation’s critical infrastructure.

The agencies understand that financial institutions may need additional time to submit certain regulatory reports in light of staffing priorities and disruptions caused by the Coronavirus Disease 2019 (COVID-19).  The federal banking agencies will not take action against any institution for submitting its March 31, 2020, Reports of Condition and Income (Call Reports) after the respective filing deadline, as long as the report is submitted within 30 days of the official filing date.  Institutions are encouraged to contact their primary federal regulator in advance of the official filing date if they anticipate a delayed submission.

Agency	Contact	Phone
Federal Reserve	Darren Gersh	202.452.2955
CFPB	Marisol Garibay	202.435.7170
FDIC	Julianne Breitbeil	202.898.6895
NCUA	Evann Berry	703.518.2801
OCC	Stephanie Collins	202.649.6870
SLC	Jim Kurtzke	202.728.5733

(March 26, 2020) – Five federal financial regulatory agencies today issued a joint statement encouraging banks, savings associations and credit unions to offer responsible small-dollar loans to consumers and small businesses in response to COVID-19.

The statement of the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, National Credit Union Administration, and Office of the Comptroller of the Currency recognizes that responsible small-dollar loans can play an important role in meeting customers’ credit needs because of temporary cash-flow imbalances, unexpected expenses, or income disruptions during periods of economic stress or disaster recoveries. Such loans can be offered through a variety of structures including open-end lines of credit, closed-end installment loans, or appropriately structured single payment loans.

The agencies state that loans should be offered in a manner that provides fair treatment of consumers, complies with applicable laws and regulations, and is consistent with safe and sound practices.

For borrowers who experience unexpected circumstances and cannot repay a loan as structured, banks, savings associations and credit unions are further encouraged to consider workout strategies designed to help borrowers to repay the principal of the loan while mitigating the need to re-borrow.

This statement follows other actions taken by the agencies to encourage financial institutions to meet the financial services needs of their customers and members who have been affected by COVID-19. For example, the federal banking agencies issued a joint statement on March 19 informing institutions that the agencies will favorably consider retail banking and lending activities that meet the needs of affected low- and moderate-income individuals, small businesses, and small farms for Community Reinvestment Act purposes, that are consistent with safe and sound banking practices and applicable laws, including consumer protection laws.

In addition to today’s statement, the agencies are working on future guidance and lending principles for responsible small-dollar loans to facilitate the ability of banks, credit unions, and saving associations to more effectively meet the ongoing credit needs of their customers, members, and communities.

Attachment: Interagency Statement (opens new window)

Agency	Contact	Phone
Federal Reserve Board	Susan Stawick	202.452.2955
CFPB	Marisol Garibay	202.435.7170
FDIC	Brian Sullivan	202.412.1436
NCUA	Ben Hardaway	703.518.6333
OCC	Bryan Hubbard	202.649.6870

ALEXANDRIA, Va. (March 26, 2020) – Federally insured, low-income credit unions that want to become certified Community Development Financial Institutions can apply to use the National Credit Union Administration’s qualification process for streamlined CDFI certification beginning March 29.

The intake period closes May 31. The NCUA’s online program guide (opens new window) has all the necessary instructions for the qualification process.

To qualify, low-income-designated credit unions submit data on their loan originations to the NCUA by email to [email protected] using the NCUA’s secured email encryption system and complete an online Participation Form (opens new window). The Office of Credit Union Resources and Expansion then analyzes each credit union’s products, services, and other indicators to determine whether it qualifies to use the streamlined certification application.

The NCUA will provide qualified credit unions with the necessary information to complete and submit the streamlined certification application to the Community Development Financial Institutions Fund, which will make the final determination on certification. Credit unions that do not qualify to use the streamlined process may still pursue the CDFI certification through the standard application (opens new window).

Developed by the NCUA and the CDFI Fund, the streamlined application process has helped 58 credit unions obtain certification as community development financial institutions.

Credit unions that obtain CDFI certification can apply for training and competitive award programs provided by the CDFI Fund. These resources can enhance credit unions’ capacity to provide underserved communities with access to safe and affordable financial services. The CDFI Fund’s webpage (opens new window) has complete information.

ALEXANDRIA, Va. (March 26, 2020) – Federally insured, low-income credit unions that want to become certified Community Development Financial Institutions can apply to use the National Credit Union Administration’s qualification process for streamlined CDFI certification beginning March 29.

The intake period closes May 31. The NCUA’s online program guide (opens new window) has all the necessary instructions for the qualification process.

To qualify, low-income-designated credit unions submit data on their loan originations to the NCUA by email to [email protected] using the NCUA’s secured email encryption system and complete an online Participation Form (opens new window). The Office of Credit Union Resources and Expansion then analyzes each credit union’s products, services, and other indicators to determine whether it qualifies to use the streamlined certification application.

The NCUA will provide qualified credit unions with the necessary information to complete and submit the streamlined certification application to the Community Development Financial Institutions Fund, which will make the final determination on certification. Credit unions that do not qualify to use the streamlined process may still pursue the CDFI certification through the standard application (opens new window).

Developed by the NCUA and the CDFI Fund, the streamlined application process has helped 58 credit unions obtain certification as community development financial institutions.

Credit unions that obtain CDFI certification can apply for training and competitive award programs provided by the CDFI Fund. These resources can enhance credit unions’ capacity to provide underserved communities with access to safe and affordable financial services. The CDFI Fund’s webpage (opens new window) has complete information.

ALEXANDRIA, Va. (March 23, 2020) – Federally insured, low-income designated credit unions that experience unexpected costs as a result of COVID-19 can request urgent needs grants (opens new window) from the National Credit Union Administration.

“The NCUA recognizes that the COVID-19 outbreak will affect all federally insured credit unions and their members to varying degrees,” NCUA Chairman Rodney E. Hood said. “If you are a low-income credit union that needs assistance during this difficult time, I encourage you to apply for these grants to ensure you can continue to meet the financial needs of your members and communities.”

The NCUA’s Office of Credit Union Resources and Expansion can provide grants up to $7,500 to low-income credit unions for:

• Hardware, software, or other equipment to help them provide financial products and services from remote locations;
• Consulting services to develop programs and partnerships to assist those affected by COVID-19, such as small businesses or schools; and
• Developing marketing materials to assure members their insured deposits are safe.

Eligible credit unions also may apply for loans supported by the Community Development Revolving Loan Fund.

Eligible credit unions may apply for grants or loans through the NCUA’s CyberGrants portal (opens new window).

Credit unions with questions should contact the Office of Credit Union Resources and Expansion by email at [email protected]. 

(March 22, 2020) – The federal financial institution regulatory agencies and the state banking regulators issued an interagency statement encouraging financial institutions to work constructively with borrowers affected by COVID-19 and providing additional information regarding loan modifications.

The agencies encourage financial institutions to work with borrowers, will not criticize institutions for doing so in a safe and sound manner, and will not direct supervised institutions to automatically categorize loan modifications as troubled debt restructurings (TDRs).  The joint statement also provides supervisory views on past-due and nonaccrual regulatory reporting of loan modification programs.

The agencies view prudent loan modification programs offered to financial institution customers affected by COVID-19 as positive and proactive actions that can manage or mitigate adverse impacts on borrowers, and lead to improved loan performance and reduced credit risk.

The statement reminds institutions that not all modifications of loan terms result in a TDR. Short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs.  This includes short-term — for example, six months — modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant.

The agencies’ examiners will exercise judgment in reviewing loan modifications, including TDRs, and will not automatically adversely risk rate credits that are affected, including those considered TDRs.  Regardless of whether modifications are considered TDRs or are adversely classified, agency examiners will not criticize prudent efforts to modify terms on existing loans for affected customers.

Attachment: Interagency Statement (opens new window)

Agency	Contact	Phone
Federal Reserve Board	Eric Kollig	202.452.2955
CFPB	Marisol Garibay	202.435.7170
CSBS	Jim Kurtzke	202.728.5733
FDIC	David Barr	202.898.6992
NCUA	Ben Hardaway	703.518.6333
OCC	Stephanie Collins	202.649.6870

ALEXANDRIA, Va. (March 20, 2020) – The National Credit Union Administration today issued Letter to Federal Credit Unions, 20-FCU-02, NCUA Actions Related to COVID-19 – Annual Meeting Flexibility, announcing greater flexibility in conducting annual meetings.

Due to the national emergency proclamation issued by President Donald J. Trump on March 13, 2020, effective immediately, a federal credit union may adopt by a two-thirds vote of its Board of Directors an amendment to Article IV without undergoing further bylaw approval processes with the NCUA.

The full letter is available in the Letters to Credit Unions and Other Guidance section of NCUA.gov.