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Administrative agencies – including the NCUA and CFPB – have released their spring regulatory agendas, which feature several items that NAFCU has been advocating for, as well as others that have already been introduced or included on previous rulemaking agendas.

Of note, the federal financial institution regulators plan to propose a joint rule in November on automated valuation models related to appraisals. Appraisals have been a hot topic amid the coronavirus pandemic as the NCUA and other regulators have offered relief to reduce burdens and enhance safety measures.

Here's a look at other important items on the agencies' agendas:

NCUA

• Current expected credit loss (CECL) phase-in: While NCUA Chairman Rodney Hood recently urged the Financial Accounting Standards Board (FASB) to exempt credit unions from this standard, the NCUA plans to propose a rule soon outlining its three-year phase-in plan, similar to what community banks have.
• Complex credit union leverage ratio: NAFCU has urged the agency to grant additional capital flexibility for credit unions and provide parity with banks amid the coronavirus pandemic. This pending proposed rule – expected in June but could be delayed – seeks to do just that.
• Field of membership: Earlier this week, the Supreme Court declined to hear the American Bankers Association's challenge the NCUA's 2016 field of membership rule. Hood said the agency plans to finalize this rule at its July meeting (postponed to July 30) that will make changes related to eliminating the urban-core requirements for local communities based on core based statistical areas, which were flagged by the D.C. Circuit Court of Appeals when it ruled largely in favor of the NCUA.
• Combination transactions: Later this fall, the agency is set to issue a final rule to create a new Subpart D of Part 708a with regulations to clarify and make transparent the procedures and requirements currently in place with regard to combination transactions. NAFCU has encouraged the NCUA to further expedite and streamline the combination transaction process.

CFPB

• Small business data collection: In line with its recent status update to the California federal district court on its efforts to implement Section 1071 of the Dodd-Frank Act, the bureau plans to release this fall its pre-rule activity of convening a SBREFA panel. NAFCU has also urged the bureau to exempt credit unions from a future rulemaking and will keep credit unions updated on the process.
• Debt collection: The bureau is set to finalize its rule on debt collection generally in October. NAFCU has flagged for the bureau additional burdens credit unions will face as a result of its third-party debt collection rule and recommended ways to address these concerns.
• Home Mortgage Disclosure Act (HMDA): The bureau plans to issue a proposed rule later this summer related to HMDA data collection and reporting requirements. NAFCU has offered ways to make compliance less burdensome, primarily by eliminating data points that do not ultimately support HMDA's goals.
• Payday lending: While the final rule was expected in June, its release has been delayed. The bureau last year finalized a delay of its the rule, but is still considering its proposal to remove mandatory underwriting requirements, including ability-to-repay provisions. NAFCU offered its support for both proposals and reiterated its request that the rule's safe harbor for NCUA's payday alternative loans be expanded. 

FHFA

• Government-sponsored enterprise (GSE) housing goals: The Federal Housing Finance Agency is expected to release these goals for 2021-2023 in August. NAFCU works closely with the FHFA on housing finance reform issues and continues to advocate for housing reform that guarantees access for credit unions to the secondary mortgage market, and fair prices based on loan quality rather than volume. In addition, FHFA Director Dr. Mark Calabria indicated in February that the agency will propose new rules under the affordable housing requirements, which would replace the existing affordable housing goals and duty to serve plans.

Access all of the regulatory agendas here.