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NAFCU requests NCUA provide more time for CUs to prepare for Call Report changes
NAFCU Regulatory Affairs Counsel James Akin wrote to the NCUA Friday regarding proposed changes to the agency’s Call Report. In the letter, Akin highlighted that the changes proposed are plentiful, and the NCUA has not provided sufficient communication beforehand to guarantee credit union industry readiness.
“NAFCU urges the NCUA to provide credit unions with more time to evaluate and prepare for these significant changes to the NCUA’s Call Report,” wrote Akin. “NAFCU and its member credit unions support the NCUA's efforts to streamline the data collection process as well as reduce the regulatory burden and create cost-savings for credit unions.”
In the letter, Akin requested the NCUA continually update the Call Report and review potential changes to its reporting requirements, including:
- Removing the $50,000 reporting threshold for member business loans or commercial loans to a single member, which is exceptionally cumbersome to track and provides little value to the NCUA;
- Removing the requirement to report first draws in a calendar year on revolving credit lines as new loans, regardless of the actual date of origination; and
- Ensuring that as many account codes as possible be auto-populated or auto-calculated to reduce the burden on credit unions.
“The NCUA should postpone the effective date of the Call Report changes from March 2022 to January 2023 so that credit unions may adequately prepare for the impact to resources and staff,” concluded Akin. “NAFCU urges the NCUA to continue to work to ease the burden on credit unions and their vendors while modernizing the Call Report.”
Read the full letter here. Through the letter, Akin reiterated many of the requests made by NAFCU President and CEO Dan Berger earlier this month.
For more information, a recent post on the NAFCU Compliance Blog breaks down the changes.
The association will continue to work closely with the NCUA to ensure credit unions have the resources, guidance, and flexibility needed to effectively serve their members.