NCUA set to propose rule on corporate CUs, finalized CECL interagency policy statement
The NCUA Board is set to hold its second open board meeting of 2020 next week and on its agenda is a proposed rule related to corporate credit unions and a final interagency policy statement on the current expected credit loss (CECL) standard. The board will also receive a briefing on the National Credit Union Share Insurance Fund (NCUSIF) and credit union mortgage rates, a supervisory priority for this year.
Corporate Credit Unions
Members of NAFCU's Research team met with NCUA's Office of National Examination and Supervision last July to discuss issues related to corporate credit union rules. NAFCU supports corporate credit unions and the invaluable role they play as providers of liquidity and has urged the NCUA to make amendments to its current rules to allow more flexibility without impacting the safety and soundness of the corporate system.
The Financial Accounting Standards Board (FASB) in November made final a delay to its current expected credit loss (CECL) standard, pushing credit unions' compliance date to 2023. Following FASB's decision to move forward with the delay, federal financial regulators – including the NCUA – issued a proposed interagency policy statement for CECL and proposed guidance on credit risk review systems.
The proposed interagency policy statement describes regulatory expectations for an institution upon adoption of CECL and explains the responsibilities of management and the board of directors when determining allowances for credit losses (ACLs) under Generally Accepted Accounting Principles (GAAP). It would become effective at the time of each institution's adoption of CECL.
NAFCU for years has shared credit unions' concerns about the negative impacts of CECL to FASB, and the association has continued to push for more guidance and relief for credit unions under the standard with the NCUA and FASB.
During the December board meeting, agency staff indicated that the NCUSIF normal operating level (NOL) for 2020 would remain at 1.38 percent. NAFCU will continue to advocate for the NCUA to reset the NOL to the historical level of 1.3 percent so that credit unions may realize the fullest distribution.
NAFCU will monitor next week's meeting – which is slated to begin at 10 a.m. Eastern and will be livestreamed on the agency's website – and provide credit unions with insights afterward.
Recently there have been discussions surrounding changes in lending contracts as the transition from the London Interbank Offered Rate (LIBOR) nears. Earlier this month, the Federal Housing Finance Agency (FHFA) released an update on the government-sponsored enterprises' (GSEs) development of an adjustable-rate mortgage (ARM) product that will be indexed to the Secured Overnight Financing Rate (SOFR).
NAFCU Chief Economist and Vice President of Research Curt Long wrote an article focused on what credit unions should know about the LIBOR transition, including the adoption of the SOFR, in a recent edition of The NAFCU Journal.
Add to Calendar 2020-07-09 14:00:00 2020-07-09 14:00:00 Cannabis Banking Issues The cannabis industry continues to pose a fascinating mix of competing opportunities and risks – particularly from an anti-money laundering (AML) perspective. Changing societal opinions and business opportunities can conflict with daunting legal landscapes and a spectrum of potential risks. Navigating the AML risks can be particularly difficult. Key Takeaways Review the current status of cannabis and hemp laws: the state vs. federal regimes Discuss recent enforcement actions involving cannabis Understand how to manage the specific AML risks presented to credit unions Walk through possible legislative reform for cannabis and financial services Register Now For On-Demand Access$295 Members | $395 Nonmembers (Additional $50 for CD)One registration gives your entire credit union access to the on-demand recording until July 9, 2021.Already registered? Go to the Online Training Center to view live. Who Should Attend? NAFCU Certified Compliance Officers (NCCOs) NAFCU Certified Risk Managers (NCRMs) Compliance staff Risk staff Audit staff Legal staff Education Credits NCCOs will receive 1.5 CEUs for participating in this webinar. NCRMs will receive 1.5 CEUs for participating in this webinar. NCBSOs 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: Review the current status of cannabis and hemp laws: the state vs. federal regimes. Discuss recent enforcement actions involving cannabis. Understand how to manage the specific AML risks presented to credit unions. Walk through possible legislative reform for cannabis and financial services. 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: Regulatory Ethics - 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 firstname.lastname@example.org America/New_York public
Credits: NCCO, NCRM, NCBSO, CPE
Add to Calendar 2020-07-08 11:00:00 2020-07-08 11:00:00 NAFCU Roadshow: Issues Facing Wisconsin & Illinois Credit Unions During COVID-19 Please join us on Wednesday, July 8 at 11:00 a.m. ET (1:00 p.m. CST) as we host a special webinar for Wisconsin and Illinois-based credit unions. During the webinar, NAFCU President and CEO Dan Berger will discuss what credit unions should expect in the coming months amid the COVID-19 pandemic and what NAFCU is doing to help credit unions during this difficult time. COVID-19 isn’t stopping NAFCU from what we do best; engaging with credit unions. Key Takeaways Review the Small Business Administration’s Paycheck Protection Program; Discuss regulatory relief; Learn more about what’s happening on your behalf in meetings with the NCUA and CFPB; Walk through market specific performance trends; And more! Note: The information in this webinar is tailored to Wisconsin and Illinois-based credit unions. Register Now For On-Demand AccessRegistration is complimentary, but you must register to attend.One registration gives your entire credit union access to the on-demand recording until July 8, 2021.Already registered? Go to the Online Training Center to view live. Who Should Attend? Wisconsin and Illinois-based credit unions 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 email@example.com America/New_York public
Program underwritten by Franklin Madison
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