WASHINGTON (1/29/16, UPDATED 5:04 p.m. ET)--Sixty-two lawmakers signed on to a Credit Union National Association-supported letter weighing in on the Financial Accounting Standards Board's(FASB) proposal related to the impairment of financial assets.
CUNA and the state credit union leagues worked closely with their federal lawmakers to seek support for the letter.
Reps. Scott Tipton (R-Colo.) and Patrick Murphy (D-Fla.) in December began circulating the letter, asking their congressional colleagues to express concerns related to the FASB plan.
They wrote, “The proposed reforms would require banks and credit unions to estimate expected credit losses for the life of a financial instrument and recognize the net present value of those losses at the moment of origination." Calling it a "stark departure" from current practice, they warned that the plan could negatively impact general credit availability and economic growth, particularly for lower income borrowers and small businesses.
CUNA Chief Advocacy Officer Ryan Donovan thanked Tipton and Murphy for their leadership on this important credit union issue.
Next week, FASB will host a meeting on the issue in which CUNA members and staff will participate.