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As the industry's Washington Watchdog, NAFCU's award-winning advocacy team maintains a constant presence on Capitol Hill among lawmakers and regulators to ensure credit unions are represented. NAFCU's efforts have led to progress on key issues in recent weeks; see below for updates.

Current expected credit loss (CECL) standard

Since the Financial Accounting Standards Board (FASB) issued this standard in 2016, NAFCU has worked to educate regulators on how it could negatively impact the credit union industry. The result: in November 2018, FASB issued an update to clarify the effective date for credit unions; regulators created more resources for compliance; and just last week, FASB decided to move forward with a proposal for a NAFCU-sought delay.

NAFCU will continue to urge FASB to exempt credit unions from this standard because of the industry's unique capital framework and work with FASB, NCUA and Congress to obtain more relief and guidance on the standard. Access CECL resources here.

Volcker rule

Five banking regulators recently confirmed NAFCU's interpretation of a provision in the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155) with a final rule that clarifies the Volcker rule relief provided in the provision applies only to community banks.

NAFCU had shared its interpretation of the provision with the regulators prior to the final rule. The association continues to set the record straight on the differences between credit unions and banks as the banking industry continues to lobby to have their requirements relaxed while trying to put the requirements on credit unions.

Nominal lease provision in National Defense Authorization Act (NDAA)

NAFCU consistently advocates against banks' efforts to gain access to rent-free leases on military installations as it could disadvantage credit unions. The association started its advocacy efforts on the issue in April this year, before the Senate and House Armed Services Committees scheduled work on the FY2020 NDAA.

While NAFCU was able to keep the provision out of the House version of the NDAA, the Senate bill does include the NAFCU-opposed language. The association is now monitoring the selection of conferees and will continue to advocate against its inclusion in any final bill. In addition to working with lawmakers, NAFCU has a grassroots advocacy campaign to allow credit unions to contact their representatives and senators directly on the issue.

Community Reinvestment Act (CRA)

A recent policy report from the Cato Institute reinforced NAFCU's position that the Community Reinvestment Act (CRA) should not be expanded to credit unions. NAFCU has strongly opposed extending CRA or CRA-like requirements to credit unions.

The report says credit unions are "fundamentally different … than banks" and "already serve CRA-targeted populations." Extending the CRA to the industry, therefore, would be counterproductive and could potentially undermine credit unions' mission.