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Hood provides insights into NCUA's CECL, DEI efforts
NCUA Chairman Rodney Hood Tuesday spoke during the Women in Housing and Finance's public policy event and provided updates on several initiatives under way at the agency, as well as key risks credit unions should keep top of mind. NAFCU Senior Regulatory Compliance Counsel Jennifer Aguilar, Senior Regulatory Counsel Elizabeth LaBerge, and Regulatory Compliance Counsel Loran Jackson attended the virtual event.
Hood outlined several areas where credit union risks are present, including:
- Bank Secrecy Act (BSA)/anti money laundering (AML) compliance;
- net interest margins and interest rate risk;
- the current expected credit loss (CECL) standard;
- diversity, equity, and inclusion (DEI) and the development of leaders for the future that match the demographics and diversity of our communities.
On CECL, Hood discussed the ways in which the NCUA continues to support and work towards a NAFCU-sought exemption for credit unions under the current expected credit loss (CECL) standard.
On DEI and the agency’s new Advancing Communities through Credit, Education, Stability and Support (ACCESS) initiative, Hood reiterated the agency’s efforts to support financial inclusion, specifically with minority depository institutions (MDIs). In particular, Hood noted financial education is particularly important and noted that the agency continues to look for ways to develop better financial education programs focused on behavioral economics.
The agency’s ACCESS initiative brings together leaders from across the agency to modernize regulations, policies, and programs in support of greater financial inclusion.
NAFCU is supportive of the program's mission to ensure the financial inclusion of all Americans and has previously pledged to promote programs and resources to help Americans reach their financial goals, including working with the CFPB and NCUA on financial literacy resources.
During the event, Hood also expressed his desire for an Office of Innovation and Access to be created at the NCUA to leverage existing technologies to help consumers.
Read Hood’s full prepared remarks here.
NAFCU recently outlined six main priorities that would provide credit unions with relief in a letter to the NCUA Board and has worked closely with the agency to share credit unions' concerns. In addition, NAFCU President and CEO Dan Berger recently met with Hood to discuss a number of issues.
The association will continue to work with the agency and remain in close contact to share credit unions' experiences and concerns as they work to serve members amid the coronavirus pandemic.
Stay tuned to NAFCU Today for the latest developments, and access the association's coronavirus resource page.