Regulators to Review Congressional Relief Legislation

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The federal regulatory agencies’ joint interagency statement issued on March 22 encourages financial institutions to work constructively with borrowers affected by COVID-19 and provides information regarding loan modifications, including when such modifications would not result in accounting for troubled debt restructuring designation.

 

The federal financial institution regulatory agencies and the state banking regulators will review the final version of the Coronavirus emergency relief legislation passed by Congress and assess its impact on the interagency statement. In the meantime, the agencies continue to encourage financial institutions to work prudently with borrowers who are affected by COVID-19.

NCUA Updates
The National Credit Union Administration announced that COVID-19 Urgent Needs Grants are available to help impacted low-income designated credit unions. The agency’s Urgent Needs Grant Guideline is available here.

The NCUA also announced that low-income credit unions that want to become certified Community Development Financial Institutions (CDFIs) can apply to use NCUA’S streamlined CDFI application process beginning March 29 through May 31.

The NCUA issued Letter to FCUs 20-FCU-02, providing federal credit unions additional flexibility for annual meetings, including an emergency exception to the in-person quorum requirement.

DOL Update
The U.S. Department of Labor has made the model notices required by the Families First Coronavirus Response Act (FFCRA) available online.

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