ARLINGTON, Va.–With two new members joining the NCUA board this week, NAFCU said that among the top issues it hopes will be tackled by the newly reconstituted board is CECL.
Or, more specifically, guidance around the new current expected credit loss standard being implemented by the Financial Accounting Standards Board (FASB). As Carrie Hunt, EVP and general counsel with NAFCU acknowledged, NCUA does not have rulemaking authority around the new rules, but it will be measuring whether credit unions are compliant.
Rodney Hood has now been sworn in as the agency’s new chairman, as CUToday.info reported here, and Todd Harper is expected to join the board this week. J. Mark McWatters, the former chairman, is now a board member, while Rick Metsger has now left the board. Hood and Harper will find credit unions “clearly grappling” with CECL, said Hunt.
On Thursday at 2 p.m. ET, NCUA will be joining with four other agencies in a webinar titled “Ask the regulators: CECL Webinar: Weighted-Average Remaining (WARM) Method.” To register, go here.
Other Issues
Other issues Hunt said NAFCU is hopeful the new board members will push to the top of their agenda include rules around loan maturity limits (even as she noted the agency is somewhat “hamstrung” by the FCU Act on the issue), and rules on subordinated debt.
All those issues are related to what Hunt referred to as “NAFCU’s strong growth agenda.”
With Hood having previously served as an NCUA board member and Harper as a senior executive, Hunt said she expects both will be able to get up to speed on issues faster than appointees who come from outside credit unions. But still there will be a learning curve, she added, noting there is a “new dynamic” at the agency both will need to adjust to.