COVID-19 restart and recovery task force
Jim Nussle
Chief Executive Officer, AMERICA’S CREDIT UNIONS. Our mission is to advocate for and advance an environment where credit unions thrive.
COVID-19 task force established
The onset of COVID-19 was like a massive earthquake followed by a tsunami of economic destruction. But the last few weeks have shown that we're now in for waves of storm fronts that we'll need to brave as we work to safely and responsibly restart normal business and support recovery efforts.
In response to this unprecedented moment, CUNA announced the formation of the Credit Union System COVID-19 Restart and Recovery Task Force. Representing Leagues, credit unions, system providers, and affiliated organizations, the task force will collect and share strategies and resources for reopening safely and effectively. We all have a lot of the same questions and concerns right now, and even in our meeting yesterday the task force considered trends in contactless services and discussed ongoing CUNA/League collaboration on COVID-19.
This is about supportive alignment, something we do a lot of as a movement. Like on advocacy, where we wrote to Congress this week about the advocacy priorities CUNA, Leagues, and credit unions have identified on COVID-19. Alignment is founded in our shared mission, something two Pennsylvania credit unions exemplified when their reciprocity agreement went into effect in response to COVID-19. We're all weathering a lot during this crisis, but it's a relief to know we're doing it together.
Modest 2021 recovery anticipated
Our latest Economic Update by CUNA Senior Economist Jordan van Rijn anticipates significant decline in growth in 2020 and some modest recovery in 2021. Uncertainty really defines the moment right now and our economists are working under assumptions, but this update also includes CUNA's April Monthly Credit Union Estimates on how the pandemic is affecting credit unions.
360-degree advocacy
- NDAA: We joined the Defense Credit Union Council and NAFCU in sharing a letter with Senate leadership on the importance of maintaining credit unions' special treatment on military bases.
- FHFA: We warned the FHFA that any new regulatory changes to Federal Home Loan Bank (FHLBank) membership should not negatively impact credit unions' abilities to access liquidity or obtain FHLBank membership.
- Credit scores: We oppose a bill that, while well-intentioned to help Americans fight for better credit scores, could result in meritless lawsuits that would burden credit unions.
- Emergency lending: We submitted a letter ahead of a hearing in the House where we shared our support for additional guidance on the SBA's PPP Loan program and further delay of CECL.
NCUA Board announces NGN program distribution
Yesterday, the NCUA Board approved a distribution from the NGN program of $171 million to roughly 900 Southwest Corporate certificate holders in July. NCUA will send letters to credit unions notifying them of payment details and will also post detailed information on its website in the near future.
While Southwest is the only estate that will receive distributions now, some other estates will likely receive distributions in the future, with the next review expected to take place in February 2021. CUNA and the Leagues have strongly advocated for the return of all recovered corporate membership capital to credit unions as soon as reasonably possible, and we're pleased NCUA has begun the process with this announcement.
Celebrating Pride
We're certainly living through a challenging time right now, but I'm reminded that June is a month to celebrate – because it's Pride Month! It's unfortunate that a lot of traditional Pride celebrations have had to adapt to COVID-19, but that in no way diminishes what we're celebrating. In that spirit, I want to acknowledge the efforts of many credit unions to help LGBTQ+ individuals gain better financial and social security. Happy Pride!
Announcing: CUNA Compliance & Risk Council
Compliance and risk professionals across our movement, we heard you! This week we announced the launch of a new, and often requested, addition to CUNA Councils—CUNA Compliance & Risk Council. I know this will be an extremely active community and I invite compliance and risk executives to join today!
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