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NCUA Chairman Rodney E. Hood addressed Maine CU CEOs and the League on a town hall call on April 22. Chairman Hood thanked Maine credit unions for their hard work over the last several weeks, saying he was heartened by the fact that credit unions are going above and beyond the call of duty to serve members.
“You are not waiting for the Chairman of the NCUA to tell you all to do the right thing,”stated Chairman Hood. “You have it embedded in the credit unions’ DNA.”
He assured town hall attendees that the NCUA is open for business and will remain open for business no matter how long this pandemic ensues. He stressed that regulations need to be effective, not excessive, and noted how his administration has been making policy adjustments to provide credit unions the flexibility they need to operate during this time.
“Bottom line, we want your institutions to be able to respond to the needs of your member owners, your employees, and your local communities in the best way you know how,” stated Chairman Hood.
Chairman Hood addressed liquidity concerns and mentioned the availability of urgent need grants to help credit unions affected by COVID-19. He also referenced NCUA’s COVID-19 resource page and encouraged credit unions to contact the agency with questions or concerns by email at COVID19Questions@ncua.gov.
At the conclusion of Chairman Hood’s remarks, League President/CEO Todd Mason thanked him for the time and attention that he is paying to Maine and to credit unions all over the country. Mason also expressed his appreciation for the Chairman’s openness and flexibility.
Other NCUA News
Also on Wednesday, the NCUA Board approved an interim final rule that amends its capital adequacy regulation following the enactment of the CARES Act.
“The Paycheck Protection Program (PPP) supports small businesses across the country and is a critical component of our nation’s response to the COVID-19 pandemic,” said NCUA Chairman Rodney E. Hood. “These regulatory changes ensure that credit unions can participate in the program without worrying about the potential for increased regulatory burdens or capital requirements. They will also help credit unions support the financial and credit needs of businesses and entrepreneurs in their communities.”
The interim final rule amends the NCUA’s capital adequacy regulation so that PPP loans receive a zero-percent risk weight in the agency’s risk-based net worth requirements. Additionally, if a loan is pledged as collateral for a non-recourse loan provided through the Federal Reserve System’s PPP Lending Facility, the covered loan can be excluded from a credit union’s calculation of total assets for the purposes of calculating its net worth ratio.