WASHINGTON—NAFCU wrote to the NCUA in response to the agency's interim final rule (IFR) renewing temporary prompt corrective action (PCA) regulatory relief for federally-insured credit unions (FICUs).
In the letter, NAFCU Regulatory Affairs Counsel Dale Baker has called on NCUA to extend the IFR's automatic expiration date to Dec. 31, 2022 in order to "fully provide FICUs with the financial planning and operational flexibilities necessary to meet compounding share growth stresses and faithfully serve their communities," as they begin to emerge from the coronavirus pandemic.
In addition, Baker encouraged the NCUA to closely monitor and catalogue the streamlined net-worth restoration plan (NWRP) model's results over the life of the IFR to determine whether such a streamlined NWRP model or similar iteration may be permanently adopted.
As CUToday.info reported earlier, the NCUA Board approved the IFR in April; the initial IFR to provide this relief expired in December 2020.