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NAFCU President and CEO Dan Berger and Executive Vice President of Government Affairs and General Counsel Carrie Hunt spoke with CFPB Director Kathy Kraninger and other bureau senior staff Wednesday to reiterate credit unions' need for regulatory relief amid the coronavirus. Berger has maintained close communication with regulators and Congress throughout the pandemic to share what credit unions are experiencing and how Washington can help them better serve members in need.

Berger urged the CFPB to hold off on rulemakings during the pandemic and recovery to ensure credit union resources can be fully dedicated to serving members. He previously asked the bureau, and NCUA, to provide broad flexibility with compliance for at least 60 days.

In addition, Berger reiterated NAFCU's call for the bureau to modernize the electronic disclosure and signature-related provisions of all its regulations. Last month, NAFCU made this request and outlined proposed legislative amendments to the Electronic Signatures in Global and National Commerce Act (E-Sign Act) to provide relief to credit unions and their members amid the coronavirus pandemic.

The CFPB is also expected to soon release a proposal to amend its qualified mortgage (QM) rule, including to move away from the debt-to-income ratio and toward an average prime offer rate threshold, and has also indicated it plans to let the government-sponsored enterprise (GSE) patch expire in 2021, with the possibility of a short-term extension to support the transition.

Berger Wednesday discussed these efforts and the possibility of temporarily relaxing the QM standard to generate more liquidity that will enable credit unions to make more loans to members during this time, especially those of low- or moderate-income.

The bureau has taken several steps to support financial institutions and consumers affected by coronavirus, including guidance on credit reporting requirements; relief from some reporting under the Home Mortgage Disclosure Act and Regulation C, as well as the Truth in Lending Act, Regulation Z and Regulation E; and encouragement to promote small-dollar lending and for financial institutions to work with borrowers.

As the industry's Washington Watchdog, NAFCU will continue to work with the CFPB and other regulators to ensure a regulatory environment that allows credit unions to serve their members throughout coronavirus relief efforts.

Credit unions are encouraged to continue contacting NAFCU with updates on how they are doing, what assistance they need, and potential areas to address as Congress begins work on a Phase 4 relief package.

NAFCU has several resources available online to assist credit unions, including an updated summary table of regulator actions, detailing actions taken by agencies to provide guidance and relief to financial institutions.