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NCUA's Hood visits NAFCU HQ
NCUA Board Chairman Rodney Hood met with NAFCU President and CEO Dan Berger at the association's headquarters Tuesday to discuss credit union issues and agency priorities.
Berger was joined by NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt and Director of Regulatory Affairs Ann Kossachev. The group shared NAFCU member feedback on a number of key industry issues, including:
Capital Reform
Following NAFCU's calls for a subordinated debt rule that allows all credit unions to grow, the NCUA Board proposed a rule during its January board to allow low-income credit unions, complex credit unions, and newly-formed credit unions to issue subordinated debt for the purpose of regulatory capital treatment. Ahead of the subordinated debt proposal, the NCUA in December voted to approve a NAFCU-sought delay to its risk-based capital (RBC) rules until Jan. 1, 2022.
NAFCU has led efforts to ensure credit unions and their members benefit from a modern capital regime, working closely with policymakers on Capitol Hill and at the NCUA.
CECL
Last year, the Financial Accounting Standards Board (FASB) 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 NCUA Board is expected to finalize an interagency policy statement on CECL during a Board meeting later this week.
NAFCU has shared credit unions' concerns about the negative impacts of CECL, and continues to push for more guidance and relief for credit unions under the standard with the NCUA and FASB.
Data Privacy
NAFCU has previously urged lawmakers to consider a national data security standard for institutions that collect and store consumer information and has resources available to ensure credit unions can effectively identify and address cyber security concerns.
In December, the association unveiled its six principles for data privacy legislation and stressed the importance of a national standard to reduce confusion and regulatory burden stemming from a patchwork of state laws. The association also has myriad resources available to ensure credit unions can effectively identify and address cybersecurity concerns.
NAFCU continues to engage with the NCUA on important issues and will monitor Thursday's NCUA Board meeting, during which the board will also receive a briefing on the NCUSIF and credit union mortgage rates, a supervisory priority for this year. The association has previously met with board members Todd Harper and Mark McWatters.