Berger calls for exam relief, further reg adjustments from NCUA
Amid impact from the coronavirus outbreak, NAFCU President and CEO Dan Berger Thursday urged the NCUA to cease all examination activity and make other regulatory adjustments that would alleviate strict compliance requirements currently in place for credit unions.
Berger pointed to the Federal Reserve’s announcement earlier this week ceasing all regular examination activity for institutions under $100 billion in assets and holding all examinations off-site to help minimize disruption and burden on financial institutions and calls for similar action from the NCUA.
“NAFCU requests the NCUA issue a statement adopting a similar approach for the credit union industry,” Berger suggested. “NAFCU does not support an arbitrary asset threshold as the deciding factor for which institutions receive an off-site examination versus no examination at all, but instead urges a risk-based analysis and approach to deciding whether safety and soundness concerns or another urgent need demands an examination now instead of deferring to later in the year.”
Although the NCUA’s updated FAQs indicate that the agency will be focused on off-site examinations through its secure information exchange portal, the entire examination process may pose substantial burden for credit unions at this time. In addition, the burden may be amplified in rural areas where staff working from home may have limited or slow internet access.
“Considering all credit unions across the country are affected, to some extent, by COVID-19, this extraordinary situation warrants a pause on examination activity until the fall of 2020 to allow credit unions an opportunity to focus on working with and meeting the needs of their members,” wrote Berger.
Additionally, Berger asked the NCUA provide several relief measures aimed at simplifying the processes of loan modifications, appraisal requirements for mortgages, and limitations on carrying and charging off negative balances.
The Senate-passed Phase 3 coronavirus relief package, the CARES Act, provides the NCUA with broad authority to suspend generally accepted accounting principles (GAAP) requirements with respect to loan modifications related to the coronavirus that would otherwise be categorized as troubled debt restructurings (TDRs).
“NAFCU and its member credit unions urge you to act swiftly to address these issues as consumer hardships and economic realities have already started to impact credit union operations,” Berger concluded.
The association will continue to work with the NCUA and stakeholders, including President Donald Trump, National Economic Council Director Larry Kudlow and Congress, to obtain relief for the credit union industry and its more than 120 million members.
Add to Calendar 2022-09-29 14:00:00 2022-09-29 14:00:00 Coming Soon: CECL This is a deep-dive refresher into the requirements of the Current Expected Credit Losses (CECL) standard. ASC 326 (CECL) is the most significant accounting standard to impact credit unions in many years. Your credit union should be prepared to adopt CECL in 2023 – this will be an effort to make sure you have a sound calculation, appropriate accounting policies and sufficient disclosures. In this Coming Soon: CECL webinar, you’ll get a baseline understanding of the accounting decisions required by the standard, with a focus on those that have tripped up earlier adopters; lessons learned from previous adopters; best practices and key items to consider for your model on a go-forward basis. Key Takeaways Understand requirements of the CECL standard Analyze lessons learned and best practices from previous adopters Evaluate key items to consider for future maintenance of the CECL model(s) 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 September 29, 2023.Go to the Online Training Center to access the webinar after purchase » Who Should Attend Presidents and CEOs CFOs Accounting titles NCRMs Risk titles Education Credits NCRMs will receive 1.0 CEUs for participating in this webinar CPA credit information is below; recommended 1.0 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Senior Associate Director of Education, NAFCU Learning Objectives: See key takeaways Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.0 credits Recommended Field of Study: Accounting – Technical About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, DC. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU firstname.lastname@example.org America/New_York public
Credits: NCRM, CPE
Get daily updates.
Subscribe to NAFCU today.