NCUA Nominee Hearing; PPP Updates; and Breach Settlement

Workers at a desk

The Senate Banking Committee has scheduled a confirmation hearing for July 21 to consider Kyle Hauptman as President Donald Trump’s nominee to the National Credit Union Administration Board.

Hauptman would take the seat of current board member J. Mark McWatters, whose term expired in August 2019. If confirmed, Hauptman’s term on the NCUA Board would run through August 2024. Read more here about Hauptman’s background.

CFPB to Testify in House Committee Hearing
On July 30 at 9:30 a.m. (Pacific), the House Financial Services Committee will convene for a hearing entitled "Protecting Consumers During the Pandemic? An Examination of the Consumer Financial Protection Bureau." CFPB Director Kathy Kraninger will testify. You can watch it “live” here.

SBA’s PPP 1502 Reporting: Updated Procedural Notice
The U.S. Small Business Administration issued Procedural Notice 5000-20036 this week updating 1502 Reporting, the monthly reporting requirements for the Paycheck Protection Program.

The 1502 report will be due to the Fiscal Transfer Agent (Colson Services) by the 15th of each month. For this month only (July 2020), lenders will be given a two-day grace period to submit the 1502 to the FTA. You can read the procedural notice here.

PPP: ‘Who Got What and How Well Did the Loans Perform?’
Paycheck Protection Program loans facilitated by U.S. credit unions helped retain 85 jobs per $1 million in loans and required only $11,792 to retain one job, according to a recent comparison of lenders by Forbes (see “PPP Loans: Who Got What And How Well Did The Loans Perform?”).

The article also states that U.S. credit unions have facilitated $5.1 billion of the federal government’s PPP funds, while non-bank lenders ($6.3 billion), community banks ($250 billion), and the 33 largest banks ($167.3 billion) provided the rest. This $429 billion grand total consists of individual loans above $150,000 (about 660,000 loans), which is 84 percent of the entire $510 billion in PPP funds issued so far. About 6 percent of credit union PPP loans were above $1 million.

There are several inaccuracies in this story regarding credit union participation. It is recommended this information be used as a high-level overview as opposed to a factual, granular analysis. You can read more about the PPP lending demographics by industry, business type, ethnicity/gender; financial institution and lender breakdown; and loan performance by industry, business type, and financial institution at your convenience.

Equifax Data Breach Settlement Claims Website 
For credit unions involved in the Equifax data breach settlement, a claims website is now available here. All of the information needed to file a claim for compensation has been posted. According to the settlement, financial institutions are entitled to seek up to $4.50 per-alerted on payment card, and $5,000 toward documented fraud costs and other enumerated losses attributable to the data breach. The claims deadline is Dec. 31.

The California and Nevada Credit Union Leagues, in conjunction with the Credit Union National Association and credit unions, are among the plaintiffs in the lawsuit, which stems from a 2017 data breach that exposed the personal information of more than 145 million consumers.

Next Phase of Weekly ‘COVID-19 Impact Survey’
As the Leagues move to the next stage of pandemic advocacy and awareness efforts, we want to thank credit unions for their commitment to completing our COVID-19 Impact Survey each week. Our survey is in transition; please stay tuned for a new message with a revamped survey in the coming weeks.

Every Monday for 16 consecutive weeks, credit union leaders helped the Leagues track how credit unions in California and Nevada are aiding members during this difficult economic period. This unique visual was made possible by the mortgage forbearances, loan extensions, emergency loans, and fee waivers offered by several credit unions. It will not be forgotten and serves as a powerful statement to legislators and society at large.

The Leagues are working on what our next survey will look like now that the March – June period has passed. The COVID-19 crisis is still affecting millions of credit union members across both states. Our reworked survey will capture the information needed to continue our dialogue with state and federal lawmakers, as well as local news media. As usual, the survey will be a work in progress as the Leagues continually tailor our efforts to accurately collect answers that reflect our movement’s ongoing response to this crisis.

The Leagues cannot thank credit union leaders enough for participating thus far, and look forward to a second round of spotlighting credit unions’ best efforts through this pandemic. Please stay tuned!

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