NAFCU, FASB discuss CECL implementation, address CU concerns
NAFCU President and CEO Dan Berger met with Financial Accounting Standards Board (FASB) Chair Rich Jones and Board Member Sue Cosper Wednesday to reiterate NAFCU's call for an industry-wide exemption from the current expected credit loss (CECL) accounting standard – which will go into effect for credit unions in 2023 – and discuss the possible extent of its impact on credit union capital and net worth classifications.
Also in attendance during the meeting were NAFCU Board Member Keith Sultemeier (president and CEO of Kinecta Federal Credit Union), Executive Vice President of Government Affairs and General Counsel Carrie Hunt, Chief Economist and Vice President of Research Curt Long, Director of Regulatory Affairs Ann Kossachev and Senior Counsel for Research and Policy Andrew Morris.
During the meeting, NAFCU staff also shared background on the NCUA’s limited authority to mitigate the harmful effects of CECL and expressed support for NCUA Chairman Rodney Hood’s call for an exemption from the CECL standard for all credit unions. Hood reiterated his thoughts on CECL while addressing attendees at NAFCU’s annual Congressional Caucus earlier this week.
NAFCU staff noted during Wednesday's meeting that the agency’s recently proposed three-year phase-in plan for the day-one adverse impact of CECL on federally-insured credit unions' net worth ratios does not address the underlying negative hit to credit union capital. The phase-in plan, however, is on par with a rule issued by banking regulators for community banks and would also exempt credit unions under $10 million from complying with CECL.
NAFCU encouraged FASB to work closely with the NCUA to organize future CECL workshops and offered appreciation for FASB’s initial efforts to educate credit unions and recognize that the pandemic has created disruption to in-person workshop events.
Recently, Brad Thaler, NAFCU’s vice president of legislative affairs, wrote to the House Financial Services Committee (HFSC) calling for a hearing to examine the impact FASB’s CECL standard will have on financial institutions. Thaler also urged the committee to consider committee member Blaine Luetkemeyer's, R-Mo., proposed legislation to not require compliance with the standard.
In addition, NAFCU President and CEO Dan Berger recently sent a letter to FASB's new chairman urging an exemption, citing concerns about procyclicality and the standard’s propensity to exacerbate capital and liquidity issues during economic downturns as well as lawmakers’ calls for additional studies on the impact of CECL.
Add to Calendar 2021-02-26 14:00:00 2021-02-26 14:00:00 The CDFI Rapid Response Program With the recent COVID-19 relief legislation, unprecedented levels of funding are being directed to underserved communities, especially communities of color. Community Development Financial Institution (CDFI) certified credit unions have a critical role to play in deploying these funds. The CDFI Fund's Rapid Response Program (RRP) opens by February 25th, making available $1.25 billion in grants to CDFIs. This webinar will help you to prepare for the RRP and other CDFI applications. All first-time CDFI Fund grant applicants are urged to attend. Don’t miss this unique opportunity to learn more about how your credit union can tap into these resources for the benefit of the members and communities you serve. CDFI certification is an essential credential for credit unions with a focus on financial inclusion today. If you have never applied for a CDFI grant, don’t miss this critical webinar. Key Takeaways Review updated information about the RRP opportunity and application process Walk through critical first steps to complete before you apply for CDFI Fund grant Register NowRegistration is complimentary, but you must register to attend.One registration gives your entire credit union access to the on-demand recording until February 26, 2022.Already registered? Go to the Online Training Center to view live. Who Should Attend? Chief Executive Officers (CEOs) Chief Lending Officers (CLOs) Business Lending Staff Lending Staff Education Credits This webinar doesn't qualify for any continuing education credits recognized by NAFCU or NASBA. About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, D.C. 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
Add to Calendar 2021-02-25 14:00:00 2021-02-25 14:00:00 Fundamentals of Credit Union Subordinated Debt This webinar will cover NCUA’s new rule authorizing the issuance of subordinated debt by natural person credit unions for purposes of regulatory capital treatment. Previously only low-income credit unions could issue subordinated debt that can count toward their net worth requirement. Under the rule, complex credit unions and new credit unions, as well as low-income credit unions, may issue subordinated debt that can count toward their risk-based capital requirement. The webinar will address material terms of the rule and the subordinated debt instrument. We’ll also cover the regulatory approval process, eligible investors, the offering process, reasons to issue subordinated debt and the current interest rate environment. Key Takeaways Understand managing the regulatory approval process. Gain familiarization with key terms of the subordinated debt note. Review the issuance and marketing process. Discuss current market dynamics for credit union sub debt. Purchase Now$295 Members | $395 Nonmembers (Additional $50 for CD)One registration gives your entire credit union access to the on-demand recording until February 25, 2022.Already registered? Go to the Online Training Center to view live. Who Should Attend? NAFCU Certified Compliance Officers (NCCOs) NAFCU Certified Risk Managers (NCRMs) Chief Executive Officers Executive Vice Presidents Chief Financial Officers Education Credits NCCOs will receive 1.5 CEUs for participating in this webinar. NCRMs will receive 1.5 CEUs for participating in this webinar. CPA credit information is below; recommended 1.5 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Associate Director of Education, NAFCU Learning Objectives: Understand managing the regulatory approval process. Gain familiarization with key terms of the subordinated debt note. Review the issuance and marketing process. Discuss current market dynamics for credit union sub debt. Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.5 credits Recommended Field of Study: Finance - Technical National Association of Federal Credit Unions (NAFCU) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Learn more. About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, D.C. 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 email@example.com America/New_York public
Credits: NCRM, NCCO, CPE
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