July 21, 2021

NAFCU Reg Committee discusses change in leadership at FHFA, recent regulator proposals

RegulationNAFCU's Regulatory Committee met Tuesday and discussed proposed rulemakings currently open for comment from the NCUA, the Federal Reserve, and the Department of Housing and Urban Development (HUD). NAFCU staff also provided an overview of recent developments regarding the recent change in leadership at the Federal Housing Finance Agency (FHFA).

NAFCU President and CEO Dan Berger and members of the association's advocacy team recently met with FHFA Acting Director Sandra Thompson to discuss Thompson's priorities as Acting Director of the FHFA as well as several of the association's concerns and priorities, including recent amendments to the government-sponsored enterprises' (GSEs) Preferred Stock Purchase Agreements (PSPAs) and the impact on credit unions' ability to provide temporary GSE qualified mortgages through the GSE Patch.

On the proposals currently open for comment, the committee reviewed the NCUA’s request for comment regarding its NOL policy methodology, HUD’s proposal to reinstate its 2013 discriminatory effects rule, and three proposals from the Fed, including:

  • a proposed rule to govern funds transfers over its FedNow Service that would establish a new, comprehensive set of rules and set out legal rights and obligations of the Reserve Banks and FedNow Service participants (view NAFCU's Regulatory Alert on this proposal here);
  • a proposal related to debit card interchange fees and routing (view NAFCU's Regulatory Alert on this proposal here); and
  • a request for comment on modifications to the policy of payment system risk (PSR policy).

In addition, the committee discussed troubled debt restructuring (TDR) accounting for financial institutions that have adopted the current expected credit loss (CECL) standard, a topic which was discussed during this month's FASB Board meeting.

The Regulatory Committee will next meet in August.