WASHINGTON—NCUA has not provided sufficient communication to credit unions to deal with all of the proposed changes to its call reports and, as a result, the industry isn’t ready, according to a letter to the agency from NAFCU.
“NAFCU urges the NCUA to provide credit unions with more time to evaluate and prepare for these significant changes to the NCUA’s Call Report,” wrote Regulatory Affairs Counsel James Akin. “NAFCU and its member credit unions support the NCUA's efforts to streamline the data collection process as well as reduce the regulatory burden and create cost-savings for credit unions.”
In the letter, Akin requested the NCUA continually update the Call Report and review potential changes to its reporting requirements, including:
- Removing the $50,000 reporting threshold for member business loans or commercial loans to a single member, which is exceptionally cumbersome to track and provides little value to the NCUA
- Removing the requirement to report first draws in a calendar year on revolving credit lines as new loans, regardless of the actual date of origination
- Ensuring that as many account codes as possible be auto-populated or auto-calculated to reduce the burden on credit unions
2023 Date Suggested
“The NCUA should postpone the effective date of the Call Report changes from March 2022 to January 2023 so that credit unions may adequately prepare for the impact to resources and staff,” concluded Akin. “NAFCU urges the NCUA to continue to work to ease the burden on credit unions and their vendors while modernizing the Call Report.”
As CUToday.info reported, CUNA also sent a letter to NCUA on the proposed changes in which it also requested more time for credit unions to respond.