CUNA President/CEO Jim Nussle and Senior Director of Advocacy and Counsel Luke Martone met with new Financial Accounting Standards Board (FASB) Chair Richard Jones and board member Sue Cosper Thursday. CUNA previously wrote to Jones about the current expected credit loss (CECL) standard, which FASB implements, when he took over as chair July 1.
CECL is a new accounting standard that recognizes lifetime expected credit losses (as opposed to the current incurred-loss approach). CUNA has steadfastly maintained that it is inappropriate for credit unions and will present numerous compliance and net worth challenges.
Nussle and Martone shared those concerns with Jones and highlighted particular concerns about its effect on credit union lending.
NCUA Chairman Rodney Hood has also expressed concerns with CECL, and NCUA issued a proposal on CECL methodology at its last board meeting.
CECL is currently scheduled to take effect for credit unions in January 2023, but CUNA has called on FASB to delay implementation until at least 2024 due to the ongoing COVID-19 pandemic.