NAFCU reiterates need for CECL exemption, calls for longer phase-in
In response to the NCUA's proposed rule to create a three-year phase-in of the day-one adverse impacts of the current expected credit loss (CECL) accounting standard on federally-insured credit unions' (FICUs) net worth ratio, NAFCU Senior Counsel for Research and Policy Andrew Morris expressed support for the concept, but also called for a longer phase-in option and additional examination flexibility.
As the standard currently does not become effective for credit unions until 2023, Morris suggested that there is still time for an intervention to occur before the industry transitions to a standard that has the potential to "chill lending activities during a period of critical economic recovery."
Amid the coronavirus pandemic, NAFCU, NCUA, and lawmakers have voiced concerns about the standard hindering financial institutions' ability to lend effectively during the recovery.
"NAFCU maintains that credit unions should not be subject to the CECL standard given our industry’s record of prudent fiscal management before and after the financial crisis, limited complexity, and structure as not-for-profit, member-owned cooperatives," added Morris. "The NCUA should recognize this difference and identify opportunities to work with the FASB and Congress to exclude credit unions from coverage under CECL."
The association highlighted how the rule would impact credit unions and broke down the proposal via section-by-section analysis in a Regulatory Alert sent to members following the proposal; view the Regulatory Alert here. Additionally, NAFCU has numerous resources available to credit unions as they prepare to implement the standard.
NCUA Board Chairman Rodney Hood in April backed NAFCU's call for an exemption for credit unions under the standard, arguing that its compliance costs outweigh its benefits. Following the announcement of Richard Jones as the new FASB chairman, NAFCU President and CEO Dan Berger sent Jones a letter outlining credit unions' concerns and urging an exemption for the industry.
The association will continue to work with FASB and the NCUA to obtain relief for credit unions.
Can Credit Unions Purchase Participation Loans?
Add to Calendar 2023-03-28 14:00:00 2023-03-28 14:00:00 A Deep Dive into FedNow Service Features and 24/7/365 Operations Join part 2 of this FedNow webinar series to deepen your knowledge of FedNow Service features and capabilities to prepare your credit union for 24/7/365 operations. Join Director of FedNow Product Management, Stephanie Miracle, and you’ll explore important operational topics that are top of mind for credit unions including release 1 features, reconcilement, accounting changes, reporting, liquidity management, fraud and risk mitigation, ISO 20022, and how to work with your service provider. Operations, technology and business development staff will find this webinar particularly valuable as they consider tactical next steps to convert to always-on payment operations. Key Takeaways Examine specific FedNow operational topics including reporting, reconcilement, seven-day accounting, liquidity management, ISO 20022 and more. Learn about fraud and risk considerations that are inherent to instant payments, and the Federal Reserve’s fraud mitigation approach and tools. Discover how to best engage with your service provider partners as you embark on your instant payments implementation journey. Register Now Registration is Complimentary, but you must register to view.One registration gives your entire team access to the live webinar and on-demand recording until March 28, 2024.Go to the Online Training Center to access the webinar after purchase » Who Should Attend? Credit union accounting and finance management NCRMs and risk titles NCCOs and compliance titles Education Credits NCCOs will receive 1.0 CEUs for participating in this webinar NCRMs will recieve 1.0 CEUs for participating in this webinar 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
A Deep Dive into FedNow Service Features and 24/7/365 Operations
Credits: NCCO, NCRM
Add to Calendar 2023-03-28 14:00:00 2023-03-28 14:00:00 SECURE 2.0: Creating a New Retirement Plan Foundation About the Webinar The SECURE 2.0 Act of 2022 was passed by Congress and signed into law by the President on December 26th 2022. The law contains 92 provisions, many of which are designed to expand retirement savings and coverage and simplify retirement plan rules. A number of these provisions will serve as the foundation for new plan formation among small businesses and may propel overall increased participation and savings rates. This is one of the largest pieces of retirement plan legislation in some time. This legislation has been anticipated for nearly a year, with key features contained in previously proposed bills presented over the last several years. While some of these features are identical to what was previously proposed, others have been modified to some extent in the final version of the law. Watch On Demand Web NAFCU firstname.lastname@example.org America/New_York public
SECURE 2.0: Creating a New Retirement Plan Foundation
Get daily updates.
Subscribe to NAFCU today.