NCUA announces Covid-19 relief measures for credit unions

Federal Issues Agency Rule-Making & Guidance NCUA Credit Union Covid-19

On April 17, the NCUA released a letter to federally insured credit unions to address temporary relief available as a result of Covid-19. The letter covers a number of matters discussed at the NCUA board’s open meeting held on April 16, including an interim final rule (IFR) issued on April 13 (covered by InfoBytes here) that permits credit unions to access the NCUA’s Central Liquidity Facility with no waiting period for advances. The letter also provides details on two real estate appraisal rules approved by the Board to provide regulatory relief for credit unions: (i) an IFR “that temporarily defers real estate-related appraisals and evaluations” for up to 120 days; and (ii) a final rule that increases the threshold amount for which a transaction involving real estate requires an appraisal from $250,000 to $400,000. Both the IFR and the final rule take effect upon publication in the Federal Register and expire on December 31. In addition, the board approved a final rule which (i) increases the maximum aggregate amount of loans a credit union can purchase from one lender without a waiver to “the greater of $5 million or 200 percent of a federally insured credit union’s net worth”; (ii) temporarily suspends the limit “on the eligible obligations that a federal credit union may purchase and hold”; and (iii) also suspends “the required timeframes for the occupancy or disposal of properties not being used to conduct business or that have been abandoned.”