Nation Association of Federally Insured Credit Unions (NAFCU) leadership maintains that a modernization and reform initiative must be initiated to ensure credit unions effectively support members.
In recent correspondence to the National Credit Union Administration (NCUA), NAFCU President and CEO Dan Berger outlined various priorities designed to aid in the COVID-19 pandemic recovery, in addition to bolstering industry integrity and health.
Berger emphasized the NAFCU’s support for fair and efficient loan modification options to credit union members exiting forbearance programs amid the pandemic and alleviating operational challenges for credit unions and potential confusion and hardship for borrowers.
In November 2020, the NCUA issued a proposed rule enabling capitalization of interest regarding loan workouts and modifications, officials said, empowering credit unions to help members meet payment obligations on all types of member loans.
“NAFCU certainly appreciates that the NCUA is currently dealing with many pressing issues, but the near-unanimous chorus of support for the proposed rule should make reviewing comments straightforward and justifies a quick finalization,” Berger wrote.
Meanwhile, industry reform measures NAFCU officials have deemed a priority include relief for credit unions related to the current expected credit loss (CECL) standard; risk-based capital (RBC) requirements simplification; the ability of credit unions to add underserved areas to their fields of membership (FOMs); and compensation in connection with loans to members and lines of credit to members.