Newsroom

NCUA Chairman Rodney Hood discussed the resiliency of the credit union industry and how it is primed to support economic recovery post-COVID-19 with NAFCU President and CEO Dan Berger during the association's landmark State of the Industry event yesterday.

More than 2,000 attendees from credit unions across the country and U.S. territories joined Thursday's event. Berger kicked off the event acknowledging how the industry has stepped up amid the coronavirus pandemic to help members.

From NAFCU's standpoint, the association has maintained its award-winning advocacy efforts, Berger said, as it's held virtual meetings with lawmakers and regulators to ensure credit unions' concerns were heard, especially as Congress enacted relief packages that included credit union relief and set asides for paycheck protection program (PPP) funding.

Berger reminded attendees that NAFCU's mission is "to provide extreme member service every day" and that "we work for you."

During his opening remarks, Hood commended credit unions on their commitment to member owners and their communities struggling to get through the crisis. Hood reiterated the NCUA's prioritization of regulatory relief efforts – which has been underscored during the pandemic – to ensure institutions have the flexibility needed to provide members with the products and services they need.

He also shared that he has formed teams at the NCUA to identify areas of needed relief and issues to address, such as liquidity, so the agency can respond rapidly. To ensure credit unions are aware of changes and relief measures, he outlined several of the Letters to Credit Unions, Regulatory Alerts, Risk Alerts, and interagency statements that are available.

Hood also detailed several of the specific ways the NCUA is working to support credit unions, including by working with Congress to make recent changes to the Central Liquidity Facility (CLF) permanent so credit unions have unfettered access to contingency funding, and with the Export-Import Bank to expand financing to credit union business members involved in exporting.

"We are confident at the NCUA that we have the tools to respond effectively and nimbly to help the economy recover," Hood said.

In the Q&A with Berger, Hood gave his impression of the state of the credit union industry, noting that credit unions were in a strong position prior to the pandemic, according to call report data, and the NCUA is leveraging that to provide relief to institutions to better serve their members in need.

Hood said he is talking with credit union CEOs daily and the theme he is seeing in efforts to help Americans is that Credit Unions are going "beyond the call of duty to help members." He shared an anecdote from one CEO who stayed in the office for 20 hours to process PPP loans, and other stories of credit unions donating masks and financial resources to organizations in need.

Berger also asked Hood about the proposed legislative changes he outlined to Senate Banking Committee Chairman Mike Crapo, R-Idaho, related to the member business lending (MBL) cap, underserved areas, capital relief, and CLF changes. Hood detailed these recommendations and said credit unions want to be part of the recovery and efforts to support the entrepreneurial spirit of Americans, which remains alive and well.

Hood also discussed the need for additional relief, especially as it relates to forbearance requests, and how credit unions can help address social injustice. He said credit unions are well-positioned to provide access to credit and financial services to marginalized and underserved communities and highlighted how low-income credit unions, minority depository institutions (MDIs), and community development financial institutions (CDFIs) have the resources and trust in place to serve these communities.

NAFCU's landmark State of the Industry event virtually brought together credit union executives and board members from across the country to dissect current trends and examine what’s coming next. Sessions from the event, including Hood's Q&A, will be available to watch on-demand online and on the event app Monday.