ARLINGTON, Va.–Credit unions have now had a few days to digest a week of Capitol Hill hearings on issues that have long been priorities.
While the hearing at which president Trump’s former personal attorney, Michael Cohen, testified received nearly all the attention, there were also hearings involving Fed Chairman Jerome Powell (at which CECL and the direction of rates were discussed), privacy, data security, CDFIs and diversity, along with other issues.
CUToday.info had coverage here and here.
“I don’t think there was anything that transpired that was unexpected,” said NAFCU’s EVP/General Counsel Carrie Hunt. “We continue to have concerns around data security, and we are clearly not there yet.”
Hunt said NAFCU has been working to separate the issue of data security from that of cybersecurity, which are often lumped together, noting the trade group believes there are some narrower steps that can be taken on data security that are not part of the larger concerns and debate involving cybersecurity.
Data security-related legislation has languished in several sessions of Congress. Why the delay? Hunt said pushback from groups that oppose the position taken by financial institutions, such as the nation’s retailers, is one reason, as is another factor: “There are just a lot of cooks in the kitchen.”
About CECL
Separately, Hunt said NAFCU continues to have its concerns around the new Current Expected Credit Losses (CECL) standards being imposed by FASB. And although the compliance deadline is approaching, Hunt said NAFCU does believe there remains some room for adjustments by FASB, especially around rules related to net worth in credit unions.
FASB has three days of meetings scheduled for this week.
In addition, NAFCU President and CEO Dan Berger will meet with Small Business Administration (SBA) Administrator Linda McMahon this week as part of an effort to increase credit unions' participation in SBA lending programs.