SFA Signs TDR-CECL Reform Joint Trades Letter
On July 29, SFA joined six trade groups including ACLI, AFSA, Equipment Leasing and Finance Association, Marketplace Lenders Association, Mortgage Bankers Association, and the National Association of Insurance and Financial Advisors in signing a letter that was sent to House and Senate Leadership.
The letter asks Congress to consider changes to sections 4013 and 4014 of the CARES Act as they work on this next COVID-19 relief bill. These changes include extending the covered period under the Troubled Debt Restructuring (TDR) under Section 4013 and also clarifying that the relief to “Financial Institutions” under the provision covers both depository and non-depository institutions, as well as ensuring that relief from the CECL accounting standard under section 4013 of the CARES Act is modified to cover non-depository financial institutions as well.
Making these changes recognizes that during these difficult times, all financial institutions are able to make important loan modifications and accommodations to help their customers maintain their businesses, homes, vehicles and other critical assets, while complying with all consumer protection and fair lending laws.