COVID-19 Update: PPP, CFPB, and NCUA Priorities

Small Business Administration

The U.S. Small Business Administration issued Procedural Notice 5000-20036 this week updating 1502 Reporting, the monthly reporting requirements for the Paycheck Protection Program. The 1502 report will be due to the Fiscal Transfer Agent (FTA) (Colson Services) by the 15th of each month. For this month only (July 2020), lenders will be given a two-day grace period to submit the 1502 to the FTA. You can read the procedural notice here.

Consumer Financial Protection Bureau (CFPB) to Testify in House Committee Hearing

On July 30 at 9:30 a.m. (Pacific), the House Financial Services Committee will convene for a hearing entitled "Protecting Consumers During the Pandemic? An Examination of the Consumer Financial Protection Bureau." CFPB Director Kathy Kraninger will testify. You can watch it “live” here.

National Credit Union Administration (NCUA) Letter on 2020 Supervisory Priorities

The National Credit Union Administration’s Letter to Credit Unions 20-CU-22 updates the agency’s 2020 supervisory priorities to reflect economic conditions that emerged in response to the COVID-19 pandemic, as well as various statutory and regulatory changes that have occurred since March 2020.

With these revised priorities, the NCUA is focusing its examination activities on areas that pose elevated risk to the credit union industry and the National Credit Union Share Insurance Fund given the current environment, including: BSA Compliance/Anti-Money Laundering; CARES Act Provisions; Consumer Financial Protection Regulations; Credit Risk Management and ALLL; Cybersecurity; LIBOR Transition Planning; Liquidity Risk; and Serving Hemp-Related Businesses.

The Leagues strongly urge you to read more about these areas of supervisory focus in the Letter to Credit Unions 20-CU-22. Additionally, given the ongoing impact of the pandemic, the NCUA will be updating the Examiner’s Guide to incorporate additional guidance for examiners, including review procedures for assessing the safety and soundness of credit unions. More information on the NCUA’s response to the pandemic is available on the agency’s Coronavirus (COVID-19): Information for Federally Insured Credit Unions and Members webpage.

NCUA ‘Urgent Needs Grants’ Fully Utilized

Funding for the COVID-19 urgent needs grants initiative has been fully utilized and new applications will no longer be accepted, the NCUA announced. The agency will complete the review process for COVID-19 urgent needs grant applications that are currently pending and notify credit unions of its decisions on those applications by email.

Urgent needs grants will remain available for events not related to the pandemic. Federally insured, low-income-designated credit unions may apply for grants up to $7,500 for emergency and natural disaster relief. Eligible credit unions wishing to apply for urgent needs grants should review the NCUA’s Urgent Needs Grants Guidelines. Apply through the agency’s CyberGrants portal. Credit unions with questions should contact the Office of Credit Union Resources and Expansion at CUREApps@ncua.gov.

 

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