NCUA finalizes rule on community charter FOMs, proposes CECL phase-in plan
The NCUA Board Thursday approved several items, including: a final rule to resolve litigation surrounding its 2016 field of membership (FOM) rule, a proposed rule to establish a three-year phase-in of the current expected credit loss (CECL) standard, a proposed rule related to asset calculation of loans made under the paycheck protection program (PPP) or other similar programs, and a request for comment on its overhead transfer rate (OTR) and operating fee methodologies.
In addition to these items, the board also received a mid-session budget briefing. Ahead of the briefing, NAFCU President and CEO Dan Berger urged the board to “ensure it is devoting enough resources toward the programs that will best assist credit unions to be successful,” such as virtual exams and FOM expansions, as the industry works to cope with and recover from the coronavirus pandemic. The NCUA expects to have a small year-end surplus for the Operating Budget, despite some increases to employee pay and benefits, as travel expenses have been lower than what was budgeted.
FOM Final Rule
“NAFCU applauds NCUA Chairman Rodney Hood and Board Members Todd Harper and J. Mark McWatters for modernizing FOM rules that will allow credit unions to grow stronger and serve more Americans,” said NAFCU President and CEO Dan Berger. “NAFCU has long supported modernized FOM rules, and we have actively worked to beat back bank lobbyists’ unrelenting opposition to these reforms. At a time when the coronavirus crisis is severely impacting our local communities, particularly many underserved, this rule will provide greater access to financial services for consumers across our nation.”
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