ARLINGTON, Va.—A new report shows which regulations credit unions are most concerned with in 2019, while also finding the optimism of CU executives is on the rise.
That optimism, incidentally, runs counter to another recent survey of CU and bank executives, as CUToday.info just reported here.
Looking to the 2019 regulatory environment, credit unions are most concerned about the CFPB’s ability-to-repay (ATR) and qualified mortgage (QM) rules as well as the Bureau's enforcement activity related to unfair, deceptive, or abusive acts and practices (UDAAP), according to NAFCU's latest Economic & CU Monitor report.
That survey found respondents are "very concerned" about the NCUA's field of membership and supplemental capital rules. In addition, the Monitor noted credit unions' concerns regarding the Financial Accounting Standards Board's (FASB) current expected credit loss (CECL) standard and Bank Secrecy Act (BSA)/anti-money laundering (AML) compliance, the trade association said.
Optimism Grows
The Monitor also showed the Credit Union Sentiment Index (CUSI) rose for the third consecutive month in January, matching the all-time high. The CUSI an index based on NAFCU member responses to eight questions on growth and earnings outlook, lending conditions and regulatory burden.
The sharpest increase was in the lending score, which recovered from a recent downward trend to match its average over the past 12 months. The growth score also rose this month with 94% of respondents rating growth conditions as "somewhat" or "very good."