Compliance Blog

The destruction caused by Hurricane Harvey in Texas, Louisiana and other places in the southeast is heart-breaking. The rain may have stopped over Houston, but the flooding continues to pose a real and active threat to the lives and livelihoods of those in and around the city. Our thoughts and prayers are with those in the hurricane's path and suffering in its aftermath. If you would like an opportunity to help communities affected by Hurricane Harvey by helping the credit unions that serve those communities, join me in donating to CUAid.coop.

Resources for Credit Unions Affected by the Hurricane

Disaster Assistance

The President has issued a disaster declaration, so disaster assistance is available for credit unions. NCUA issued a press release describing some available resources for affected credit unions including guaranteeing lines of credit for credit unions through the NCUSIF, making liquidity loans through the CLF, and rescheduling examinations to affected credit unions. Credit unions in Texas wanting to access these resources can contact the Region IV office in Austin at (512) 342-5600 (open Monday-Friday, 7am-5pm Central). Credit unions in Louisiana can contact the Region III office in Atlanta at (678) 443-3000 (open Monday-Friday, 7am-5pm Eastern).

NCUA’s Office of Small Credit Union Initiatives can provide urgent need grants of up to $7,500 to low-income credit unions that experience sudden costs to restore operations interrupted by the storm.

Grants from the National Credit Union Foundation's CUAid relief system are also available. Credit unions can apply for a Disaster Emergency Relief Grant through the Cornerstone Credit Union League here.

Credit unions that offer small business loans through the SBA may be interested in the Administration's Disaster Loan Program. The SBA's Hurricane Harvey Recovery website includes information about the SBA disaster assistance program and available 12-month payment deferments for borrowers in hurricane affected areas.

Reporting Closures and Damage

Section 748.1(b) of NCUA's rules and regulations does require all federally-insured credit unions to notify their regional director within 5 business days of any disaster which results in the physical destruction or damage to the credit union causing an interruption in vital member services, if the interruption is projected to last more than two consecutive business days.

Within a reasonable time afterwards, section 748.1(b) requires that credit unions make a report of the incident, filed in its main office, that records the office/s where the disaster occurred, when it took place, the amount of damage or loss, any operational or mechanical deficiencies that might have contributed to the loss or damage and what has been done or is being done to correct those deficiencies.

State-chartered credit unions may need to report closures and damage to their state-chartering authorities as well. Notices of temporary closings, reports of physical damage, and requests for resources can be made to the Texas Credit Union Department by phone at (512) 837-9236, by fax at (512) 832-0278, or by email at cudmail@cud.texas.gov. The Department has released a Hurricane Harvey Advisory for Texas Credit Unions.

Notifications of closures can be made to the Louisiana Office of Financial Institutions by fax at (255) 925-4548 or (255) 925-4524 or by email at ofila@ofi.la.gov. The office has issued guidance to Louisiana-chartered financial institutions and an Emergency Preparedness Guide & Event Script as well.

Resources for Members

Credit unions may receive calls from affected members regarding flood insurance. FEMA has a host of resources for those affected by Hurricane Harvey, including information on the National Flood Insurance Program and forms and instructions for filing claims.

Closed credit unions who participate in Co-Op Shared Branching can refer their members to the locator website to find open credit unions and ATMs to access their funds.

Credit union members with questions about their Share Insurance coverage may contact the NCUA’s Consumer Assistance Center at (800) 755-1030 Monday through Friday between 8 a.m. and 5 p.m. Eastern.

NAFCU is here to serve credit unions while they serve their communities. Credit unions can access additional resources on our webpage. Please let us know how we can help.

Programming Note

NAFCU's office will close at noon today and will also be closed on Monday for Labor Day. We will be back to blogging on Wednesday. Everyone have a safe Labor Day weekend.