The House and Senate this week could put the finishing touches on new COVID relief legislation that could have a big impact on credit unions.
The bill, which has evolved largely in party favor, will provide many Americans with checks worth up to $ 1,400. With most consumers sticking to the government’s previous economic impact payments, there is little reason to expect behavior to be any different this time around, and it will likely further increase deposit volumes at co-ops. credit.
New data from the National Credit Union Administration shows that deposits in federally insured credit unions increased nearly 20% in 2020 amid slowing loan and membership growth and declining income. With a slowdown in mortgage refinancing likely in the coming months, the industry is likely to be under even more pressure to channel these deposits into growth opportunities.
Credit unions are also starting to have a clearer idea of what work might look like after the pandemic is over. Many in the industry expect to move to a hybrid working model once COVID subsides, employees alternate between office and remote work. That was one of the main takeaways from last week’s Credit Union National Association online government affairs conference, which also included remarks from the three NCUA board members. While NCUA President Todd Harper called for new programs at the Consumer Protection Agency, Vice President Kyle Hauptman and others in the industry have pushed back against that in their own remarks during the conference. Hauptman and board member Rodney Hood also both called the agency at improve the charter process to find ways to facilitate the creation of new credit unions.
This week is also the deadline for credit unions to submit comments to the NCUA regarding a request for information on how the agency can increase transparency and improve communication.
Outside of COVID relief legislation, lawmakers this week will consider a variety of issues important to credit unions. Among them, the House Small Business Committee will hold a hearing on the next steps of the Paycheck Protection Program, the House Financial Services Committee will examine racial equity from the perspective of equitable access to housing and financial services, and the Senate will continue its consideration of Appointment of Rohit Chopra as Head of the Consumer Financial Protection Bureau.