5 things to know this week
NAFCU's widely read NAFCU Today is credit union leaders' go-to source for the latest on issues impacting the credit union industry. For those short on time, here's a roundup of this week's top need-to-know updates and resources.
NCUA issues accounting guidance on CECL transition final rule
The NCUA issued accounting guidance for its final rule on the current expected credit loss (CECL) transition, determining that the term “fiscal year” should not be interpreted to mean “calendar year.” This clarification from the agency resolves an issue that NAFCU advocated for as it affected non-calendar year filers that wanted to adopt the CECL phase-in.
This guidance allows credit unions with non-calendar year fiscal years to adopt CECL at the beginning of their first fiscal year end following Dec. 15, 2022, while still obtaining the three-year phase-in relief on their net worth ratio. Read NAFCU’s insight post on the rule.
New CFPB report examines risks of BNPL, fintech
The CFPB Thursday issued a new report looking at the increasing presence of buy now pay later (BNPL) programs and integrated “super apps.” The report explores BNPL offerings and how it differs from traditional banking offerings to gauge whether the “payments ecosystem in the United States is fair, transparent, and competitive.” NAFCU previously wrote to the CFPB in response to its request for comment regarding its inquiry into providers of BNPL products, specifically outlining the potential risks of the Pay in 4 model, including the inability for consumers to build credit and risk of damage to their credit scores.
NAFCU has also advocated for the implementation of Section 1033 and previously sent a letter urging the CFPB to address the gathering and sharing of potentially sensitive transaction data done by nonbank technology companies. Relatedly, the association called on the bureau to ensure that error resolution responsibilities under the Electronic Funds Transfer Act (Regulation E) are fairly balanced for credit unions and third-party payment system operators.
Senate Small Biz hearing on EIDL commends CU lending process
The Senate Small Business and Entrepreneurship Committee held a hearing earlier this week examining the Small Business Administration’s (SBA's) COVID-19 Economic Injury Disaster Loan (EIDL) program. During the hearing, members expressed frustration regarding the winding down of EIDL; and in addition, members expressed concerns with the fraud during the loan to servicing transition process, making sure that law enforcement is equipped to pursue any fraud situations that arise. Of note, in her closing statement, Sen. Joni Ernst, R-Iowa, recognized the good work of community banks and credit unions for getting the much-needed funds out the door to borrowers.
Household debt surpasses $16 trillion in second quarter of 2022
The Federal Reserve Bank of New York’s Center for Microeconomic Data Tuesday released its Quarterly Report on Household Debt and Credit, which revealed a $312 billion increase in total household debt in the second quarter of 2022. Credit card balances also saw an increase of $46 billion, marking a 13% cumulative increase since the second quarter of 2021. This increase represents the largest jump in more than 20 years.
U.S. job openings dip in June
Ahead of today’s highly anticipated Jobs Report, the Bureau of Labor Statistics released the Job Openings and Labor Turnover Survey (JOLTS) Tuesday, which revealed that total job openings declined by 605,000 from the upwardly revised 11.3 million in May.
Around 5.95 million people were counted as unemployed in June, meaning there were 1.9 openings per every available worker. All eyes are on today’s Jobs Report figures to see how this bodes for inflationary concerns. NAFCU Chief Economist and Vice President of Research Curt Long will share insights via a new Macro Data Flash report.
CUNA Mutual Group
Add to Calendar 2022-08-18 14:00:00 2022-08-18 14:00:00 Credit Union Testimonial: How BCU is Accelerating Transformation & Expanding Financial Wellness with AI About the Webinar The global economic landscape is undergoing some major changes. High inflation, rising interest rates and uncertainties surrounding economic recession have caused some credit unions to scale back on digital transformation initiatives. This is a key time, however, for credit unions to seek new areas of opportunity to achieve their desired return targets while limiting losses. AI and machine learning models offer a more targeted approach for assessing member creditworthiness than traditional methods. Discover how your credit union can tap into personal lending opportunities and expand credit access to more borrowers quickly, with minimal upfront costs. In this webinar, Dave Brydun, SVP/Chief Lending Officer, will share how BCU grew its personal loan portfolio while limiting losses and gaining new members. This webinar will cover: How BCU originates loans digitally to acquire more borrowers, without disrupting its branch network or processes. How BCU expanded its footprint nationally while providing an optimized digital experience Discover how credit unions can use sophisticated machine learning models to more accurately identify risk and approve more applicants than traditional, credit score-based lending models. Watch the Webinar On-Demand Web NAFCU email@example.com America/New_York public
Credit Union Testimonial: How BCU is Accelerating Transformation & Expanding Financial Wellness with AI
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