WASHINGTON (3/1/16)--Throughout the Credit Union National Association (CUNA) Governmental Affairs Conference last week, credits unions were provided with opportunities to discuss future and past rulemakings with regulatory agency staff.
Starting on the first day of the conference--Feb. 21--CUNA’s Examination and Supervision Subcommittee held an executive session where Larry Fazio, National Credit Union Administration (NCUA) director of the Office of Examination and Insurance, and Tim Segerson, NCUA deputy director of the Office of Examination and Insurance, presented ideas on future implementation of an extended exam cycle. Subcommittee members engaged NCUA staff on the necessity for efficiency in the exam and call report processes.
The CUNA Consumer Protection Subcommittee discussed several issues with staff from the both Consumer Financial Protection Bureau (CFPB) and NCUA. Elizabeth Ellis, CFPB deputy assistant director of the Office of Financial Institutions, and Gail Laster, NCUA director of the Office of Consumer Protection, provided updates on their agencies’ agendas for 2016 and answered questions about recent rulemakings from the subcommittee members.
Over the course of the four-day conference, several groups visited the CFPB to discuss overdraft protection and other pending rulemakings. Director Richard Cordray addressed attendees during the Feb. 23 CUNA GAC general session. Corey Stone, CFPB assistant director of credit information and deposit markets, joined a breakout session about overdraft services and small-dollar loans.
The Ohio Credit Union League also discussed overdraft services with Gary Stein, CFPB deposit markets program manager; Ellis; and Jennifer Stockett, CFPB senior advisor, financial institutions and business liaison.
During this discussion, Stein indicated that he expects the CFPB to hold a Small Business Review panel on overdraft by the end of this year, and does not expect a rulemaking until 2017.
NCUA Board members Debbie Matz, Rick Metsger and J. Mark McWatters also presented during the CUNA GAC, and Gail Laster, NCUA Director of the Office of Consumer Protection, and Linda Jekel, Washington Direct of Credit Unions, participated in a breakout session titled, "Regulation vs. Guidance/Best Practices: Implications for Credit Union Examinations and Compliance Efforts." GAC attendees had other opportunities to meet several NCUA staff members.
During the Payments Policy Subcommittee meeting, Bill Sullivan, NACHA senior director and group manager of government relations; Jaime Graham, NACHA director of government relations; Michael Hoppe, Federal Reserve Bank of Chicago senior vice president; and Della Tate, Federal Reserve Bank of Richmond senior account executive, provided updates to the subcommittee and answered questions about recent issues in the payments space.
CUNA’s Accounting Advisory Committee met to discuss the Financial Accounting Standards Board’s (FASB) pending proposal on credit impairment. In addition to several industry experts, NCUA Director of Supervision Scott Neat joined the discussion to provide the regulator’s perspective on the proposal that would require a “current expected credit loss” (CECL) method be used for determining credit impairment. CUNA continues to advocate on this issue to achieve an improved standard, which is expected to be finalized next quarter.