NASCUS PRESIDENT & CEO LUCY ITO ON THE APRIL NCUA BOARD MEETING

April 16, 2020

NASCUS PRESIDENT & CEO LUCY ITO ON THE APRIL NCUA BOARD MEETING

ARLINGTON, Va. – Today, the NCUA Board held its first public meeting since the onset of the COVID-19 pandemic. At the meeting, the Board discussed it’s COVID-19 response and real estate appraisal relief.

NASCUS President and CEO Lucy Ito issued the following statements in response to today’s meeting.

On Interim Final Rule, Part 725, Central Liquidity Facility:

“NASCUS has long held that liquidity is essential to preserving the credit union system and safeguarding members. Early on, we encouraged NCUA to take swift action to enable the Central Liquidity Facility to meet credit union system liquidity needs as the effects of the COVID-19 pandemic unfolded. We commend the Board for heeding our call.

“We share the opinions of Board Members Harper and McWatters that due to the unknown liquidity needs of credit unions and the likelihood of an extended economic recovery, the sunset date of the CLF provisions in the CARES Act should be extended beyond December 31, 2020.  At a minimum the provisions should be extended to December 31, 2022. In fact, we would argue that because of the vital nature of liquidity, there is a need for a robust liquidity facility in non-crisis times, as well, and thus the CLF provisions should not sunset.”

On Temporary Final Rule, Part 701, Regulatory Relief in Response to COVID-19 Pandemic:

“Like NCUA, State Regulators are committed to providing credit unions with flexibility to serve their members during these unprecedented times. NASCUS and State Regulators are closely examining the Temporary Final Rule to determine the next steps to ensure parity and uniformity between state and federally chartered credit unions.”

On Final Rule, Part 722, Real Estate Appraisal Threshold Levels:

“We applaud the NCUA Board’s decision increasing the threshold level below which appraisals would not be required for residential real estate transactions. Increasing the threshold from $250,000 to $400,000 creates parity between credit unions and banks, which is consequential for competitiveness and safety and soundness. Credit unions have historically taken a conservative approach to lending and voluntarily seek appraisals for transactions below the thresholds to mitigate risks to both their members and their operations.”

Information Contact:

Shelton Roulhac, Vice President, Communications, sroulhac@nascus.org  or (703) 528-5974

 

NASCUS is the national association that advocates for a strong and healthy state credit union system, and whose members include state regulatory agencies, credit unions, credit union leagues, and organizations that support the state credit union system.