WASHINGTON–Credit unions not only have a multitude of never-before-asked questions for CUNA, those questions are changing on an almost daily basis as the coronavirus pandemic grows, with CUs seeking direction on exam cycle flexibility, how to protect board members who are older, whether meetings need to be held, and more.
Both CUNA and NAFCU have told CUToday.info their phones and inboxes have been busy as credit unions ask the questions noted above, as well as a host of other compliance queries.
CUNA Chief Advocacy Officer Ryan Donavan said the trade association is working hard to get answers to every one of those questions and more and said in the last week resolutions to some of the issues being raised have been found.
“We want all the credit unions to be safe and sound, but maybe we don't need to bring down the hammer right now in the form of any new guidance,” Donovan told CUToday.info. “That’s what we're hearing from a lot from credit unions.”
More Questions Raised
NAFCU’s EVP and General Counsel Carrie Hunt said in addition to the questions on in-person vs. virtual events, the association has also been responding to queries related to branch closures, especially in states where the government has banned gatherings of more than 50 people. CUs are questioning whether that also applies to branches or other facilities where more than that number of people are employed.
NAFCU has also fielded questions around the closing of loan documents and related disclosure and timing issues, added Hunt, noting the trade group has been in constant contact with NCUA.
Similarly, Donovan reiterated CUNA’s concern over flexibility with exams, board meetings and annual meetings, which the trade association addressed last week with letters to NCUA.
Donovan said a chief concern raised by many credit unions has had to do with requirements face-to-face board meetings be held.
“It's one of the most significant of concerns we’ve been getting from a number of credit unions because they are interested in protecting their board members,” said Donovan, adding CUs are equally worried about protecting the health of their employees and members.
Ryan Donovan
NCUA Letter
Late Friday, NCUA responded to that concern by releasing Letter to Federal Credit Unions 20-FCU-02, which grants FCUs flexibility when it comes to annual meetings, allows FCUs to adopt by a two-thirds vote of their board of directors an amendment to Article IV without undergoing further bylaw approval processes with the NCUA, and gives credit unions the authority to hold annual meetings virtually if certain conditions apply.
Donovan the overarching issue around which CUNA has been focused as the pandemic continues to affect the country in ways no one foresaw is the ability of credit unions to meet the suddenly changed needs of their members and communities.
“Right now, we want to do what we can to make sure credit unions are in a position to serve their members through the pandemic and into the recovery,” said Donovan, noting CUNA continues to press Congress for expanded appropriations for the Community Development Revolving Loan Fund and the Community Development Financial Institution Fund. “If there’s a community that's particularly hard hit, we want to make sure the CDFI Fund has the resources available to help.”
Work-From-Home Issues
Donovan added CUNA has also been focused on helping credit unions that are having difficulty transitioning staff to working at home, as well as working to get NCUA to consider capital forbearance, similar to what was done by the agency coming out of Hurricane Katrina disaster.
“As you recall, following that disaster credit unions were getting a lot of late pays, delayed pays…working individually with hard-hit members on new loans, et cetera. We’re asking NCUA not to let these kinds of problems right now impact a credit union’s capital rating for the time being,” Donovan said.
Carrie Hunt
As CUToday.info reported here, CUNA has also raised concerns with Congress over the risk of members flooding into credit unions to cash checks Congress has promised to deliver in response to the coronavirus.
Similarly, NAFCU CEO Dan Berger said the trade group remains actively engaged with Capitol Hill on “the credit union industry and providing perspective on any measures that may impact credit unions.”
Both CUNA and NAFCU continue to collect stories from credit unions on how they are assisting members. Those stories, in turn, are being shared with Capitol Hill.
Resources Available
NAFCU has created a resource page on issues related to coronavirus here.
CUNA has created a resource page here.
CUToday.info also has an extensive list of resources and links here.