CA Credit Unions Celebrate VICTORY; League Synopsis of AB 3088

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After working with California Gov. Gavin Newsom over the past several weeks, his bill — Assembly Bill 3088 — passed on the floors of the California State Assembly and State Senate this past week and was immediately signed into law.

The Tenant, Homeowner, and Small Landlord Relief and Stabilization Act of 2020 is a HUGE VICTORY for credit unions as it will maintain their ability to work with members on mortgage forbearances.

AB 3088 was a major last-minute compromise coming out of several competing political interests and stemmed from multiple bills in the legislature dealing with eviction and mortgage forbearance. The California Credit Union League and credit unions are thrilled that it does not include any language on mortgage foreclosure moratoriums, mandatory forbearance, or long-term eviction moratoriums.

However, there are important provisions in the legislation that credit unions should be aware of. Please review the League’s synopsis of AB 3088. If a credit union is considering moving forward with longer-term mortgage forbearances for some members, they can use this synopsis when discussing with their legal counsel.

The League could not be prouder of the credit union movement’s GRAND SLAM in Sacramento! The steps credit union leaders, their staffs, and credit union supporters took were absolutely amazing. The governor’s bill, AB 3088, came after nearly 10,700 urgent messages were sent to state senators educating them on the harmful impact of AB 1436, which moved from one senate committee to another but was never introduced on the floor of the senate. AB 1436 was a near repeat of the mortgage forbearance requirements that credit unions had already defeated in AB 2501 in late June.

Within just a couple of months, credit unions rallied together during two intense Connect For The Cause campaigns by sending a total of 21,125 messages to help kill both AB 2501 and AB 1436.

What is even more incredible is the fact that credit unions already work with members daily to accomplish the good intentions of so many legislators in Sacramento. During normal economic times, credit unions look out for their members’ best interest — and when the economy takes a turn, credit unions are VIGILANT AND PROACTIVE on behalf of their members’ financial needs.

With AB 3088, the governor is leading by taking a very thoughtful approach — and for that, credit union leaders are EXTREMELY THANKFUL. Newsom has listened to credit unions’ concerns and sees how the industry has provided financial relief to struggling members through forbearances, skipped payments, zero or low interest loans, and fee waivers during the current COVID-19 pandemic.

Credit unions’ unfailing support and commitment kept state senators informed during every step of this daily battle. The League would like to THANK YOU FOR ALL YOU HAVE ACCOMPLISHED on behalf the movement and credit union members!

Credit Union Shares Disaster Recovery Plan
As Northern California credit unions deal with staff being evacuated from their homes and the closure of branches due to mandatory wildfire evacuations, Redwood CU CEO Brett Martinez recently had the opportunity to share his credit union’s natural disaster recovery plan during a weekly CEO call hosted by the California and Nevada Credit Union Leagues.

Section 6 (pages 21 – 25) of "How Redwood Credit Union Responded to the 2017 North Bay Fires" details a number of steps that are applicable to today’s wildfires and natural disasters across California. This section includes practices, communication, technology, and staffing — tested and implemented after several wildfires in the credit union’s footprint over the past few years. You can also view the business continuity plan template under the Emergency Preparedness Plan section of the Leagues' Disaster Relief & Preparedness webpage for sample content you may wish to use.

As a reminder, CU Aid disaster grants are available for credit union employees and board members to assist with immediate disaster relief needs. Visit our Disaster Relief & Preparedness webpage for more information on these grants, including an application form. In addition, credit unions are encouraged to consider donating to CU Aid to help with disaster grant funding.

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