ALEXANDRIA, Va.–Both NCUA and the CFPB have released their Spring 2021 regulatory agenda, with NCUA noting it is preparing a final rule on “combination transactions with non-credit unions; credit union asset acquisitions, which refers to credit unions buying banks, as well as rules related to CECL.
NCUA’s original proposal on “combination transactions” was first made in January 2020, as reported here, and could be voted on as early as the NCUA’s board meeting next week.
NCUA said the rule changes are intended to clarify and make transparent procedures and requirements used by the agency when evaluating a purchase by a credit union of a bank or other non-credit union institution.
In addition, NCUA also said its Spring agenda, which was published by the White House Office of Management and Budget, will look at rules to mitigate the effects from the current expected credit loss (CECL) accounting standard
Under the CECL proposal, the agency has called for a phase-in period of three years to be established for the day-one adverse effects on credit unions’ regulatory capital under CECL. Credit unions of less than $10 million assets would be exempted from having to use the standard to figure loan loss reserves.
Carrie Hunt, EVP and general counsel with NAFCU, said the trade group is supportive of many of the proposals outlined in the NCUA agenda.
CFPB Agenda
When it comes to the CFPB’s agenda, Hunt noted its plans are relatively limited and how it acts will likely be affected by the naming of a permanent director.
She said NAFCU is pleased to see the CFPB reverse itself and announce it will no longer pursue two HMDA rulemakings it had released earlier.
“The fewer rules, the better in our book,” said Hunt.
The NCUA agenda can be found below: