ALEXANDRIA, Va. (Aug. 28, 2017) – The National Credit Union Administration is providing help to credit unions and their members in parts of Texas and Louisiana struck by Hurricane Harvey.
“We have been monitoring the situation constantly since last week, and NCUA staff are coordinating with other agencies and working continually to provide assistance to credit unions and their members,” NCUA Board Chairman J. Mark McWatters said. “This has been a devastating storm affecting millions of people, and the effects will be felt for months or even years. The NCUA will be on the job as long as necessary.”
“All of us were stunned by the power of this storm and moved by the suffering inflicted on the people in its path,” NCUA Board Member Rick Metsger said. “As the area works to recover, our agency will work to help credit unions and their members get back on their feet.”
There are approximately 150 federally insured credit unions in the areas of Texas affected by Hurricane Harvey and approximately 28 credit unions in the areas of Louisiana affected by the storm. President Donald J. Trump on Friday issued a disaster declaration for parts of Texas hit by the storm and a second declaration earlier today for parts of Louisiana where tornados and flooding could occur. Those declarations make federal assistance available. Under the NCUA’s disaster assistance policy for those areas, the agency will, where necessary:
- Encourage credit unions to make loans with special terms and reduced documentation to affected members;
- Guarantee lines of credit for credit unions through the National Credit Union Share Insurance Fund;
- Make loans to meet the liquidity needs of member credit unions through the Central Liquidity Facility; and
- Reschedule routine examinations of affected credit unions.
During natural disasters, the NCUA works with individual state league organizations and state regulators to ensure all federally insured credit unions know about the agency’s available assistance. NCUA examiners will remain in close contact with the affected local credit unions to offer advice and assistance.
When a disaster strikes, NCUA personnel operate under three priorities:
- Ensure the safety of credit union staff;
- Keep facilities and operations available to members; and
- Provide material and technical assistance, as needed, to affected credit unions.
Federal credit unions may provide assistance to other credit unions and non-members in the affected areas under certain conditions:
- They may provide services to members of other credit unions under their correspondent services authority;
- They may provide emergency financial services for non-members, including check cashing, access to ATM networks, or other services to meet short-term emergency needs of individuals in the areas affected by the floods, under the authority to engage in charitable activities; and
- If they provide services on a charitable basis, they may not impose charges for services that exceed their direct costs.
The NCUA’s Office of Small Credit Union Initiatives can provide urgent needs grants (opens new window) of up to $7,500 to low-income credit unions that experience sudden costs to restore operations interrupted by the storm.
Credit union members with questions about their Share Insurance coverage may contact the NCUA’s Consumer Assistance Center at 800.755.1030 Monday through Friday between 8 a.m. and 5 p.m. Eastern.