Senators Urge NCUA to Allow CU Borrower Flexibility Due to Coronavirus Posted by AVCU on 5:18 PM

Eight Democratic members of the U.S. Senate wrote to the heads of the NCUA along with those of the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), Consumer Financial Protection Bureau (CFPB), Federal Housing Finance Agency (FHDA), and Conference of State Bank Supervisors (CSBS).  They called on NCUA and its peers to  provide guidance to help assist individuals and communities affected by the coronavirus.

The senators urged all financial regulators to encourage those they regulate to work with consumers and businesses affected by the virus and to recognize that they may have difficulty accessing affordable credit and face temporary hardship in making payments on their credit obligations.  They further encouraged allowing financial institutions to modify terms on existing loans or extend new credit to help consumers and businesses affected by the virus, consistent with safe-and-sound lending practices.  They also discouraged adverse information being reported to credit bureaus and utilized in any manner that harms consumers affected by the virus.

Read the Senators' letter to regulators here. 

Separately, the Senators also wrote to CUNA and other financial institution trade associations urging that credit unions (and banks) work with their members to prioritize employee health and safety in the event of coronavirus outbreak, and to offer flexibility and forbearance to borrowers whose finances may be negatively impacted.  They wrote:

We urge you to work with your customers to ensure they are not financially penalized as they seek to comply with CDC guidance and protect the safety and well-being of their families.  Many of your customers may face shocks to household finances, including challenges with paying their day-to-day bills, credit cards, small business loans and mortgage payments, among other financial obligations.  Accordingly, we urge you to consider waiving overdraft and monthly service fees for affected customers, suspending or modifying student loan, mortgage and business loan payments as necessary, providing affordable, short-term credit, and encouraging customers to contact your institution’s special care line so that you may work with them individually to help them avoid the negative consequences of this unique health emergency.

Read the Senators' letter to CUNA here.