Newsroom
February 01, 2016
NAFCU urges FASB to reconsider CECL
The Federal Accounting Standards Board should reconsider its current expected credit loss standard, NAFCU President and CEO Dan Berger urged in a letter Monday.
Berger emphasized the need for any proposed update to consider the unique structure of credit unions as member-owned, not-for-profit institutions. He emphasized NAFCU's belief that credit unions should not be subject to the proposed update as the costs for credit unions outweigh the benefits.
Berger also urged the board to extend by one year the implementation of the CECL standard in light of the delay in finalization. FASB is now expecting to finalize its CECL standard near the end of the second quarter of 2016.
"NAFCU has heard increasing levels of concern from credit unions over the FASB's continual postponement of the accounting standard's finalization while financial institutions continue to inch toward a fixed effective date," Berger wrote in a letter to FASB. "In order to facilitate a smooth transition to the new method of credit loss accounting, it is critical that credit unions are provided with enough time to ensure they are adequately prepared by the ultimate effective date."
He continued, "NAFCU and our member credit unions strongly recommend the FASB re-deliberate the effective date for the CECL model and extend this date to reflect the significantly diminished period of time financial institutions have, as a result of the more than six-month delay of finalization, to examine a completed [accounting standards update] and develop suitable models for projecting credit losses."
On Friday, Reps. Scott Tipton, R-Colo., and Patrick Murphy, D-Fla., along with 60 other House members sent a NAFCU-endorsed letter to FASB to raise concerns about how the CECL standard could hurt credit unions and community banks.
In related news, NAFCU Regulatory Affairs Counsel Alexander Monterrubio will attend FASB's public meeting on Thursday in Norwalk, Conn., which will focus on the CECL standard. The board will stream audio for the meeting live starting at 12:30 p.m. Eastern.
For credit unions and other nonpublic business organizations, the current implementation dates are fiscal years beginning after Dec. 15, 2019.
Berger emphasized the need for any proposed update to consider the unique structure of credit unions as member-owned, not-for-profit institutions. He emphasized NAFCU's belief that credit unions should not be subject to the proposed update as the costs for credit unions outweigh the benefits.
Berger also urged the board to extend by one year the implementation of the CECL standard in light of the delay in finalization. FASB is now expecting to finalize its CECL standard near the end of the second quarter of 2016.
"NAFCU has heard increasing levels of concern from credit unions over the FASB's continual postponement of the accounting standard's finalization while financial institutions continue to inch toward a fixed effective date," Berger wrote in a letter to FASB. "In order to facilitate a smooth transition to the new method of credit loss accounting, it is critical that credit unions are provided with enough time to ensure they are adequately prepared by the ultimate effective date."
He continued, "NAFCU and our member credit unions strongly recommend the FASB re-deliberate the effective date for the CECL model and extend this date to reflect the significantly diminished period of time financial institutions have, as a result of the more than six-month delay of finalization, to examine a completed [accounting standards update] and develop suitable models for projecting credit losses."
On Friday, Reps. Scott Tipton, R-Colo., and Patrick Murphy, D-Fla., along with 60 other House members sent a NAFCU-endorsed letter to FASB to raise concerns about how the CECL standard could hurt credit unions and community banks.
In related news, NAFCU Regulatory Affairs Counsel Alexander Monterrubio will attend FASB's public meeting on Thursday in Norwalk, Conn., which will focus on the CECL standard. The board will stream audio for the meeting live starting at 12:30 p.m. Eastern.
For credit unions and other nonpublic business organizations, the current implementation dates are fiscal years beginning after Dec. 15, 2019.
Share This
Related Resources
Add to Calendar 2024-05-16 14:00:00 2024-05-16 14:00:00 Spotting and Reporting Elder Financial Exploitation Elder financial abuse cases can often be difficult to investigate. Join us in learning more about the evolving red flags associated with this crime as well as the current regulatory landscape. In this webinar, Spotting and Reporting Elder Financial Exploitation, you’ll discover useful insights into performing an elder abuse investigation as well as reporting requirements. At the end, you and your team will feel confident in handling financial exploitation cases. Key Takeaways Identify changing red flags for financial exploitation Locate important resources for your investigations Draft eye-catching SARs Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until May 16, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCBSOs NCCOs NCRMs BSA, compliance and risk titles Education Credits NCRMs will receive 1.0 CEUs for participating in this webinar NCCOs will receive 1.0 CEUs for participating in this webinar NCBSOs will receive 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Spotting and Reporting Elder Financial Exploitation
Credits: NCCO, NCBSO, NCRM
Webinar
Add to Calendar 2024-05-14 14:00:00 2024-05-14 14:00:00 Navigating Fair Lending Compliance: Laws, Best Practices, and Regulatory Guidance Join our impactful webinar, Navigating Fair Lending Compliance: Laws, Best Practices, and Regulatory Guidance. This session is designed to enhance your understanding of federal fair lending and related laws, focusing on their interplay and including key statutes such as the Equal Credit Opportunity Act, the Home Mortgage Disclosure Act, and the Fair Credit Reporting Act. You’ll also delve into practical guidance and best practices to ensure your institution adheres to regulatory expectations and offers products and services in a fair and non-discriminatory manner. Key Takeaways Understand and identify various forms of discrimination in lending practices Review and interpret guidance from regulators to improve compliance strategies Get up to speed with the latest updates, including the new Regulation B rule on small business lending Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until May 14, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCRMs will recieve 1.0 CEUs for participating in this webinar NCCOs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Navigating Fair Lending Compliance: Laws, Best Practices, and Regulatory Guidance
Credits: NCCO, NCBSO, NCRM, NCVE
Webinar
Add to Calendar 2024-05-13 09:00:00 2024-05-13 09:00:00 Covering Your Assets- The Bottom Line on Tracking and Collateral Protection Listen On: Key Takeaways: [04:23] Having access to policy and claim information is vitally important so you can mitigate your risks in that area. [06:39] Members are shopping and changing their insurance more than ever before. 41% of households with car insurance shopped for coverage at least once in the last 12 months. [10:05] One of the leading indicators of a default or a repossession situation is the dropping of insurance. [12:49] The most important thing from a tracking and risk management perspective is to make sure that the borrower lists the credit union as a lienholder. Web NAFCU digital@nafcu.org America/New_York public
Covering Your Assets- The Bottom Line on Tracking and Collateral Protection
Strategy & Growth, Consumer Lending
preferred partner
Allied Solutions
Podcast
Add to Calendar 2024-05-07 14:00:00 2024-05-07 14:00:00 BSA Training for the Board of Directors This webinar, BSA Training for the Board of Directors provides vital training with a comprehensive overview of the Bank Secrecy Act (BSA), anti-money laundering (AML) and combatting the financing of terrorism (CFT) compliance requirements. You’ll explore the ramifications of non-compliance and gain insights into the expectations and requirements set forth by the National Credit Union Administration (NCUA). This includes discovering how board engagement plays a pivotal role in fostering a robust BSA/AML compliance program within your credit union. Don’t miss this opportunity to equip your board with the knowledge and insights needed to navigate the regulatory landscape effectively. Key Takeaways Identify BSA/AML compliance requirements Review board member duties as it relates to BSA/AML compliance Examine current regulatory actions that may impact your credit union Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until May 2, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend Board members Board chairs and vice chairs Supervisory committee members Presidents/CEOs Executive assistants Education Credits NCRMs will recieve 1.0 CEUs for participating in this webinar NCCOs will recieve 1.0 CEUs for participating in this webinar NCBSOs will recieve 1.0 CEUs for participating in this webinar NCVEs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
BSA Training for the Board of Directors
Credits: NCCO, NCBSO, NCRM, NCVE
Webinar
Get daily updates.
Subscribe to NAFCU today.