As the U.S. House Financial Services Committee continues to work through pandemic-related legislation aimed at economic recovery, the League teamed up once more with the Ohio Bankers League (OBL) to ensure Ohio credit unions and banks can continue assisting impacted consumers. In a joint letter to the Ohio committee delegation, both the League and OBL urged for an extension on loan modifications. Currently, the Troubled Debt Restructure (TDR) provisions, as afforded in Section 4013 of the CARES Act, are set to expire Dec. 31, 2020, unless Congress acts. As your credit union continues to provide loan flexibility for impacted members, the TDR provisions must be extended to avoid future financial losses, increased risk, and diminished capital reserves within the financial services system. The League will continue working with OBL and the CUNA League system to secure a TDR extension, through Dec. 31, 2021, to provide helpful relief as your credit union continues to keep consumers afloat.
Read the joint letter and reach out to League SVP of Advocacy, Emily Leite, for additional questions about the joint TDR extension efforts.