WASHINGTON (2/2/16)--Credit Union National Association (CUNA) member credit unions will have their voices heard during two important policy discussions scheduled this week by the Consumer Financial Protection Bureau (CFPB) and the Financial Accounting Standards Board (FASB).
Sandy Tallarico-Gogan of Park Community CU, Louisville, Ky., and Susan Hannigan, senior vice president/chief financial officer of Jeanne D’Arc CU, Lowell, Mass., will bring the credit union perspective to checking account access and current expected credit loss (CECL) issues.
Tallarico-Gogan, Park Community CU’s senior vice president of branch operations, will speak about access to checking at a CFPB field hearing scheduled for Wednesday at 11 a.m. (ET). She will be one of the industry representatives sharing her view on checking accounts.
While the hearing will likely not include an official proposed rule, recent history suggests the bureau may publicly release information or research on policy changes it is considering.
Last year, the bureau outlined proposals it was considering related to arbitration agreements the same day it conducted a field hearing on such agreements. A CUNA member also participated in the arbitration hearing.
On Thursday, Hannigan, along with CUNA Senior Director of Advocacy Luke Martone, will participate in FASB’s meeting where it will discuss the board’s CECL proposal, which CUNA has strong objections to.
The proposal would require a forward-looking CECL model instead of the current "incurred loss" approach. This new standard would require credit unions to hold additional capital well above their current loan loss reserves, a requirement that will have significant consequences on lending in communities.
Last week 62 lawmakers signed a CUNA-supported letter to FASB expressing concerns with the proposal. The letter was the result of efforts from CUNA and the Independent Community Bankers of America to ask FASB to consider the proposal’s impact.