Home Banking Credit unions get their wish with extension of CLF changes

Credit unions get their wish with extension of CLF changes

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Credit unions have scored some victories with the signing of the Consolidated Appropriations Act.

The new bill extended key provisions originally granted under the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act. But the fate of the legislation had been in question for several days. President Trump initially said he would not sign the bill before reversing his position. He signed the act on Sunday.

Under the Consolidated Appropriations Act, changes to the National Credit Union Administration’s Central Liquidity Facility made to help institutions weather the economic fallout from the coronavirus pandemic will now be extended through Dec. 31, 2021. The changes, which were originally set to expire on Thursday, give credit unions greater flexibility and borrowing authority.

Additionally, the act extends the regulatory relief measures related to troubled debt restructurings and lengthens the exemption from complying with the Financial Accounting Standards Board’s CECL methodology until Jan. 1, 2022.

“These vital extensions ensure the NCUA and federally insured credit unions are able to respond to the evolving nature of COVID-19, and they provide needed regulatory certainty to the industry,” said NCUA Chairman Rodney Hood in a Monday press release.

The act also extends the Paycheck Protection Program, with about $284 billion set aside for first- and second-round forgivable PPP loans.

There is also roughly $15 billion earmarked for PPP lending through community-based financial institutions, such as community development financial institutions and minority depository institutions.