Summary: Letters to Credit Unions 20-CU-02 NCUA Actions Related to COVID-19

Letters to Credit Unions 20-CU-02 NCUA Actions Related to COVID-19

March 2020

 LTCU 20-CU-02 describes the agency’s initial response to the COVID-19 crisis and refers credit unions to 17 previously issued guidance on disaster recovery, business continuity, and serving distressed communities. This guidance covers: 1) working with members, 2) FAQs, 3) NCUA’s supervision program, and 4) NCUA’s operational status.

1)    Working with Members

NCUA examiners will not criticize a credit union’s efforts to provide prudent relief for members when such efforts are conducted in a reasonable manner with proper controls and management oversight. Such efforts may include:

 

  • Waiving ATM fees & increasing ATM daily cash withdrawal limits
  • Waiving overdraft fees & early withdrawal penalties on time deposits
  • Waiving availability restrictions on insurance checks
  • Easing restrictions on cashing out-of-state and non-member checks
  • Easing credit terms for new loans for members who qualify
  • Offering or expanding payday alternative loan programs
  • Increasing credit card limits for creditworthy borrowers
  • Waiving late fees for credit card and other loan balances
  • Offering payment accommodations such as allowing borrowers to defer or skip some payments, or extending the payment due dates

 

2)   Information Website and Frequently Asked Questions

NCUA has created a page on the agency’s website to host COVID-19 guidance. NCUA has also issued Frequently Asked Questions (FAQ) addressing numerous issues.

 

3)   NCUA’s Examination and Supervision Program

As credit unions implement expanded telework programs and limit external visitors, NCUA will limit examination and supervision work over the coming weeks to offsite procedures only (except for exigent circumstances). In addition:

 

  • NCUA Examiners will work with credit union staff to facilitate the secure exchange of information needed to conduct offsite examination work
  • NCUA will be mindful of the impact examiner requests may have on credit union working to meet the challenges of the COVID-19 crisis
  • NCUA will be mindful of the impact of COVID-19 on credit union conditions and take that into consideration in evaluating remedial supervisory actions

 

4)   NCUA’s Operational Status

Effective through March 30, 2020, NCUA headquarters and regional office staff will telework.  Credit unions should submit information to the NCUA in electronic form to the maximum extent possible. The agency has setup electronic mailboxes in each region and the central office for that purpose. Credit unions should note that NCUA may use “digital certification” signatures on documents.

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