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Several congressional committees this week are holding organizational meetings and starting work on key issues, and Congress is looking to move forward with another coronavirus relief package. NAFCU's advocacy team continues to be active with lawmakers, staff, and administration officials to secure additional tools that will allow credit unions to better support members and economic recovery amid the coronavirus pandemic.

In addition, following an announcement last week from CFPB Director Dave Uejio that the bureau will begin supervising lenders related to the Military Lending Act (MLA) and plans to "rescind public statements conveying a relaxed approach to enforcement of the laws in our care," NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt sent an update to members outlining what credit unions with over $10 billion in assets can expect in the bureau's examinations.

NAFCU has consistently engaged with the bureau, Congress, and Department of Defense (DoD) on compliance concerns related to the MLA. Last year, the DoD cited NAFCU and the Defense Credit Union Council as it adjusted language related to MLA interpretive guidance. NAFCU will continue to advocate for clear guidance related to MLA compliance and examinations.

On Capitol Hill:

• The House Financial Services Committee is set to hold its organizational meeting Wednesday – during which it will adopt committee rules and likely approve members appointed to serve as chairs and ranking members on subcommittees – and two hearings Thursday: A full committee hearing to discuss the need for additional pandemic-related stimulus and a subcommittee hearing on providing additional small business support, especially to minority-owned businesses.
• The House Small Business Committee Thursday will meet to discuss the state of the small business economy and how programs, including the paycheck protection program (PPP) and economic injury disaster loan (EIDL) program, have provided relief. NAFCU President and CEO Dan Berger recently joined a call with the Biden administration for a discussion of small business lending issues. Small Business Administration (SBA) data released last week revealed that $35 billion in PPP loans have been approved since the program relaunched last month, with credit unions providing more than $1 billion of those loans.
• A House Energy & Commerce subcommittee will also meet Thursday to discuss ways to protect consumers from pandemic-related fraud and scams. In December, the Financial Crimes Enforcement Network (FinCEN) alerted financial institutions to vaccine-related fraud, and the agency has more coronavirus advisories and alerts available on its website.

Related to the PPP, the SBA is continuing to provide additional procedural and informational notices. Here's a look at some recent ones:

• Tax implication reporting requirements: Reiterates that microloan intermediaries and 7(a) lenders do not have to file 1099-MISC for borrowers who received payments of principal and income under section 1112 of the CARES Act.
• Electronic signatures: Two separate notices extend the modified signature procedures to April 30, 2021, for 7(a) and 504 loans and microloan intermediaries.
• Microloan closings: Extends the modified closing procedures for microloans until April 30, 2021.

A roundup of other notices released last week can be found here. Access NAFCU's PPP FAQs for additional insights.

Also happening this week:

• two webinars to help Community Development Financial Institution (CDFI)-designated credit unions provide coronavirus-related support in their communities are being offered by the NCUA and Inclusiv (read more here);
• Thursday, NAFCU is offering a webinar on compliance considerations under the Servicemembers Civil Relief Act and the Military Lending Act; and
• registration is still open for NAFCU's first conference of 2021 – Virtual Strategic Growth – happening in two weeks. View the agenda.