Newsroom

NAFCU President and CEO Dan Berger and NCUA Chairman Rodney Hood Thursday discussed credit union concerns and priorities on a number of key issues, including the agency's recently announced ACCESS initiative, the National Credit Union Share Insurance Fund (NCUSIF), credit unions' capitalization of interest on loan modifications, and more. NAFCU Executive Vice President and General Counsel Carrie Hunt, Director of Regulatory Affairs Ann Kossachev, and Senior Regulatory Counsel Elizabeth LaBerge also joined the call.

Advancing Communities through Credit, Education, Stability and Support (ACCESS) Initiative

The NCUA last month announced the launch of its ACCESS initiative, bringing together leaders from across the agency to modernize regulations, policies, and programs in support of greater financial inclusion.

NAFCU is supportive of the program's mission to ensure the financial inclusion of all Americans and has previously pledged to promote programs and resources to help Americans reach their financial goals, including working with the CFPB and NCUA on financial literacy resources.

NCUSIF and Capitalization of Interest

On the NCUSIF, Berger discussed the association's advocacy related to the NCUA's management of the NCUSIF and credit union investment authority. 

NAFCU has previously advised the NCUA Board to consider measures to allow credit unions additional investments – even on a temporary basis – rather than assess a premium to lower the ratio.

On credit unions' capitalization of interest under Appendix B to Part 741, NAFCU Board of Directors Chair Debra Schwartz, president and CEO of Mission Federal Credit Union (San Diego, Calif.), and NAFCU's Regulatory Committee in September called on the NCUA to "act quickly to issue an interim final rule [IFR] permitting credit unions to capitalize interest" when it comes to troubled debt restructurings (TDRs) and loan modifications.”

In the letter, Schwartz and the committee detailed the options currently available to credit unions once forbearance ends, but argued that they "are not beneficial for the borrower or the institution."

Stress Testing and Capital Planning

NAFCU addressed the Federal Reserve’s updated hypothetical scenarios to use in 2020 stress test exercises and the agency’s approach to credit unions who have seen large share growth but are not subject to prompt corrective action (PCA). 

During its May meeting, the NCUA Board unanimously approved an interim final rule on PCA to provide temporary regulatory capital relief to federally-insured credit unions (FICUs). NAFCU previously urged the agency provide capital relief during the pandemic, including changes to PCA requirements.

The group also discussed issues related to monitoring securities, capitalizing interest, state privacy laws, and virtual meeting guidance.

The association previously had conversations with Board Members Todd Harper and J. Mark McWatters earlier this year.

NAFCU will continue to work with the agency and remain in close contact to share credit unions' experiences and concerns as they work to serve members amid the coronavirus pandemic.

Stay tuned to NAFCU Today for the latest developments, and access the association's coronavirus resource page.