Newsroom
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.
CECL
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.
NCUSIF
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.
Mortgage Rates
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.
Share This
Related Resources
Add to Calendar 2024-06-26 14:00:00 2024-06-26 14:00:00 Gallagher Executive Compensation and Benefits Survey About the Webinar The webinar will share trends in executive pay increases, annual bonuses, and nonqualified benefit plans. Learn how to use the data charts as well as make this data actionable in order to improve your retention strategy. You’ll hear directly from the survey project manager on how to maximize the data points to gain a competitive edge in the market. Key findings on: Total compensation by asset size Nonqualified benefit plans Bonus targets and metrics Prerequisites Demographics Board expenses Watch On-Demand Web NAFCU digital@nafcu.org America/New_York public
Gallagher Executive Compensation and Benefits Survey
preferred partner
Gallagher
Webinar
Add to Calendar 2024-06-21 09:00:00 2024-06-21 09:00:00 2024 Mid-Year Fraud Review Listen On: Key Takeaways: [01:16] Check fraud continues to be rampant across the country. Card fraud is affecting everyone. [04:31] Counterfeit US passport cards are just another new toolbox in the bad actors’ toolbox. [07:21] Blocking the fallback is the only way to defeat counterfeit cards. [11:17] The best way is constant education to your members in as many channels as you can. [13:02] We are still seeing overdraft lawsuits. Make sure the programming you have at your credit union matches what you have displayed for the members. Web NAFCU digital@nafcu.org America/New_York public
2024 Mid-Year Fraud Review
Strategy & Growth, Consumer Lending
preferred partner
Allied Solutions
Podcast
Add to Calendar 2024-06-21 09:00:00 2024-06-21 09:00:00 The Evolving Role of the CISO in Credit Unions Listen On: Key Takeaways: [01:30] Being able to properly implement risk management decisions, especially in the cyber age we live in, is incredibly important so CISOs have a lot of challenges here. [02:27] Having a leader who can really communicate cyber risks and understand how ready that institution is to deal with cyber events is incredibly important. [05:36] We need to be talking about risk openly. We need to be documenting and really understanding what remediating risk looks like and how you do that strategically. [16:38] Governance, risk, compliance, and adherence to regulatory controls are all being looked at much more closely. You are also seeing other technology that is coming into the fold directly responsible for helping CISOs navigate those waters. [18:28] The reaction from the governing bodies is directly related to the needs of the position. They’re trying to help make sure that we are positioned in a way that gets us the most possibility of success, maturing our postures and protecting the institutions. Web NAFCU digital@nafcu.org America/New_York public
The Evolving Role of the CISO in Credit Unions
preferred partner
DefenseStorm
Podcast
Get daily updates.
Subscribe to NAFCU today.