Removing Barriers Blog

Letter sent to Subcommittee prior to hearing on pandemic lending-related bills
Posted June 25, 2020 by CUNA Advocacy

Prior to today's hearing in the House Financial Services's Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets, CUNA wrote to Chairman Sherman and Ranking Member Huizenga commenting on several pandemic lending-related bills.

The subcommittee discussed several pieces of legislation during the hearing.

H.R. 6790, The Business Borrowers Protection Act
H.R. 6790 would prevent lenders from requiring borrowers to repay on an accelerated basis any government loan related to the COVID-19 pandemic. We thank Chairman Sherman for his efforts to protect consumers and small businesses. However, we believe that this legislation would be unnecessary if a simplified loan forgiveness policy was in place. 

H.R. ____, The CARES Act Section 4014 Technical Corrections Act
A provision to delay the effective date of the Financial Accounting Standards Board’s (FASB) Current Expected Credit Loss (CECL) accounting standard for entities presently required to comply with the standard was included in the CARES Act. However, this provision does not relieve the burden on credit unions and other lenders which have until 2023 to come into compliance. This legislation does correct a problem for certain financial institutions. However, we encourage Congress to ensure the relief from CECL in the CARES Act does not terminate in the middle of a company’s fiscal year and recommend a further delay of CECL for credit unions and other lenders, which should have been included in the first place.

H.R. ___ To temporarily halt the Federal financial regulators from carrying out rulemakings unrelated to the COVID-19 emergency until the end of such emergency
While we appreciate the intent of this legislation—to temporarily halt regulators from carrying out rulemakings unrelated to the COVID-19 pandemic—we are concerned that the way this legislation is drafted may spur severe unintended consequences. This legislation would halt updates to important and timely rulemakings such as the CFPB’s updates to its payday rule and even prevent the National Credit Union Administration from updating its rulemakings.