Letters sent to Senate Banking re: CARES Act provisions

Letters sent to Senate Banking re: CARES Act provisions

On December 3, CUNA wrote to the Chairman of the Senate Banking Committee along with the Republican Members of the Committee.

As Congress considers end of year legislation, including a potential COVID recovery package, we respectfully ask that the following CARES Act provisions be extended through the end of 2021:  

  • Section 4013 -- Troubled Debt Restructuring (TDR).  This provision makes it easier for consumers impacted by the pandemic to obtain loan modifications by giving credit unions flexibility not to consider these modifications as troubled debt for supervisory purposes. If this provision expires, it will be harder for credit unions and banks to help consumers impacted by the pandemic. 
  • Section 4016 - Central Liquidity Facility (CLF).  This provision provided for a temporary expansion of the National Credit Union Administration's (NCUA) Central Liquidity Facility (CLF), allowing corporate credit unions to act as agents for natural person credit unions and expanding the CLF's borrowing authority from 12 times the paid in capital to 16 times. These changes make the CLF more accessible to credit unions ensuring that credit unions have adequate supply of emergency capital.

 

Links to the letters:

Senators: