Findings Include Most Credit Unions Have Made Modifications to Loans Offered
PLANO, TEXAS (April 16, 2020) – Cornerstone Credit
Union League has surveyed its credit union members to determine their
response to the coronavirus (COVID-19) pandemic. Poll results include
details regarding availability of emergency loans, modifications, cash
withdrawals, and changes in business operations.
The COVID-19 Response Poll was conducted from March 31 through April 4
and invitations were sent to CEOs of affiliated Cornerstone credit
union members, of which 72 responded. Cornerstone Senior Vice President
of Credit Union Relations Mike Delker said the poll results will help
guide Cornerstone’s credit union relations team in anticipating members’
“Since the beginning of the pandemic, our team has worked around the
clock to connect with members, whether it’s to determine how we can best
serve them during this challenging time or just to see how they’re
doing,” Delker said. “The poll results give us deeper insight into their
needs and how we can support their goals.”
- Approximately one-third (36%) of the respondents have offered,
or are planning to offer, 0% or very low rate emergency loans in
response to COVID-19.
- Eight of 10 (81%) have made, or are planning to make,
modifications to some, if not all, of the loans they offer. The most
frequently cited modification is postponed payments, followed by fee
waivers, collection/repossession adjustments, and reduced payments.
- Nearly all participants (97%) have adjusted lobby operations in
response to COVID-19, and a large majority (82%) have made changes in
personal appointments with members. About one-third (35%) of
participants had altered their drive-thru operations, and one in five
have made adjustments to online banking (21%) and mobile banking (21%).
- Roughly one-fourth (23%) of the respondents have experienced a
significant increase in cash withdrawals as a result of the pandemic.
Somewhat lower percentages have faced challenges with title searches or
car loans (17%), burdens arising from the EFMLA paid leave provision
(16%), and information technology Issues (13%). Some respondents
reported that employee-related issues (for example, adjusting to working
from home) have also impacted their credit unions as a result of the
- Nine out of 10 respondents (89%) have implemented social
distancing of employees in the office, while about one-fourth (23%) have
instituted daily limits on cash withdrawals.
- When asked to identify the top regulatory and compliance
challenges they have encountered while working through the pandemic, the
poll participants cited: giving loan extensions while staying in
compliance, EFMLA issues, Reg D, annual meeting requirements, and TDR
- Respondents provided a variety of suggestions for ways
Cornerstone can help during the pandemic. Those mentioned more often
included continuing to provide timely and accurate information
(including updates and interpretations of new laws) and sharing best
practices on how other credit unions are coping.
Of the total responses, 65% have fewer than $90 million in assets;
19% have $90 million to $300 million in assets; 7% have $300 million to
$750 million in assets; and 8% have more than $750 million in assets.
Additional ways Cornerstone has supported its members during the pandemic include:
- A pandemic resources page to keep members abreast of the latest in regulatory, legislative, and credit union news
- Advocacy efforts on behalf of credit unions on issues affecting
them, particularly when it comes to provisions in new legislation, in
tandem with other leagues and CUNA
- Member outreach, keeping them updated via email, polls, and videos
- Weekly webinars and virtual roundtable discussions, available to
members to share knowledge and tips to navigate these uncertain times
About Cornerstone Credit Union League
Cornerstone Credit Union League is the nation’s largest regional credit
union trade association, serving more than 500 credit unions in
Arkansas, Oklahoma, and Texas. Cornerstone exists to advance the success
of credit unions in the region through legislative and grassroots
advocacy; regulatory and compliance support; training, educational, and
networking opportunities; essential communications related to the news
and information affecting the credit union industry; and other products
and services that establish Cornerstone as the essential partner for
credit unions. For more information, visit cornerstoneleague.coop.