June 15, 2021

NAFCU-sought items for CECL, FOM, more on spring reg agendas

RegulationsAdministrative 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. In a new insights post on NAFCU's Compliance, Risk & BSA Network and ONES + CFPB Supervision Network, NAFCU Director of Regulatory Affairs Ann Kossachev provided a comprehensive summary of the agendas.

Here's a look at some items of note included in the agencies' agendas:


Automated Valuation Models (AVMs): Later this year, the agency is set to issue a proposed rule that would implement the Dodd-Frank Act's four quality control standards for the use of AVMs by mortgage originators and secondary market issuers as part of the process of determining the collateral worth of a mortgage secured by a principal dwelling. The proposed rule would be in coordination with the CFPB, FHFA and other agencies.

Investment and Deposit Activities: A proposed rule that would amend Part 703 to modernize and improve the NCUA’s investment rule by providing FCUs more flexible investment options. NAFCU has advocated for the NCUA to use its existing authorities to expand investment options for credit unions.

Complex Credit Union Leverage ratio: The agency is expected to issue a proposed rule that would address NAFCU’s previous call for the NCUA to grant additional capital flexibility for credit unions and provide parity with banks amid the coronavirus pandemic. NAFCU has consistently advocated for a credit union analog to the Community Bank Leverage Ratio to provide an off-ramp for compliance with the risk-based capital (RBC) rule.

Credit Union Service Organizations (CUSOs): NAFCU has expressed support for the NCUA’s expanding CUSO lending authorities but also asked for a streamlined notice and comment rulemaking process for any additional authorities.

Current expected credit loss (CECL) standard: A final rule on the phase-in of the CECL standard is expected. NAFCU has called on the NCUA to issue such a proposal as soon as possible and will continue to update credit unions on the latest regarding CECL implementation.  

In addition, the agency's agenda includes final rules on several NAFCU-sought topics, including:


Of note, in a recent blog post on its agenda, the CFPB explained that it will conduct an assessment of a rule implementing the Home Mortgage Disclosure Act (HMDA) and will no longer pursue two HMDA rulemakings that were listed in the proposed rule stage on previous agendas from the bureau.

In the agenda, the bureau also states it will assess potential next steps regarding its advanced notice of proposed rulemaking on the implementation of Section 1033 of the Dodd-Frank Act and has no concrete rulemaking plans.

Also included on the bureau's agenda is a final rule amending the mortgage servicing rules, including loss-mitigation related provisions to address actions required of servicers working with borrowers affected by COVID-19.


Much of the Financial Crimes Enforcement Network (FinCEN) agenda includes the agency's efforts to implement the National Defense Authorization Act (NDAA).


Of note, the Small Business Administration (SBA) is finalizing all the interim final rules regarding its paycheck protection program (PPP), which expired on May 30.

Access all of the regulatory agendas here.