CUNA wrote to House Financial Services Committee leadership Wednesday in advance of the committee’s markup on the budget resolution that allows the committee to spend $75 billion in reconciliation over a 10-year budget window. The committee is marking up its legislation that is limited to the parameters of its reconciliation instructions.

CUNA supports the inclusion of $9.961 billion allocated to states, territories, and tribes for direct assistance with mortgage payments, property taxes, utilities, and other housing costs.

“While we support initiatives to aid distressed mortgage borrowers, CUNA is increasingly concerned about the impact the large volume of mortgage forbearances will have on the liquidity of mortgage servicers,” the letter reads. “With FHFA’s recent forbearance period extension and the pandemic becomes prolonged, Congress should create a financing program, or liquidity facility, for mortgage servicers in need of assistance in order to preserve their ability to respond to the unprecedented levels of payment forbearance required to help families affected by COVID-19.”

CUNA also notes further Congressional action on COVID-19 is needed to ensure that credit unions remain in a position to serve their more than 120 million members including:

• Provide temporary flexibility to NCUA to offer forbearance from Prompt Corrective Action requirements; and
• Exempt member business loans from the cap during and for one year after the national emergency.