News Snippets - August 2020

NCUA Board Meeting. During its July meeting, the National Credit Union Administration (NCUA) Board unanimously approved four items. First, the board approved a chartering and field of membership final rule which re-adopts portions of the 2016 final rule related to the definition of a well-defined local community and will take effect 30 days after publication in the Federal Register. Second, was a proposed rule that would impose a three-year phase-in of the day-one adverse impacts of the Current Expected Credit Losses (CECL) standard. Third, a proposed rule to exclude loans under the Small Business Administration’s Paycheck Protection Program (PPP) from a federal credit union’s (FCU) total assets when assessing the annual operating fee was unanimously approved. Additionally, the rule would change the timeframe used for calculating the annual operating fee and modernize the current operating fee rule by removing outdate references. Finally, the board approved a notice and request for comment regarding the methodologies used in calculating the annual operating fee and the overheard transfer rate. Comments for the three proposals are due 60 days after publication in the Federal Register.