Removing Barriers Blog

CUNA Members Discuss Policy with Regulators During GAC
Posted February 26, 2016 by CUNA Advocacy

Throughout the week at CUNA’s GAC, credits unions had a myriad of opportunities to discuss future and past rulemakings with staff from regulatory agencies.  

Starting on Sunday morning, CUNA’s Examination and Supervision Subcommittee held an executive session where Larry Fazio and Tim Segerson 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. 

On Sunday night, the Consumer Protection Subcommittee discussed several issues with staff from the both CFPB and NCUA. CFPB’s Deputy Assistant Director of the Office of Financial Institutions and Business Liaison Elizabeth Ellis, and the Director of NCUA’s Office of Consumer Protection Gail Laster, provided updates on their agencies’ agendas for 2016 and answered questions about recent rulemakings from the subcommittee members.

On Tuesday, several groups traveled over to CFPB to discuss overdraft protection and other pending rulemakings. Then on Tuesday morning Director Richard Cordray addressed attendees during the general session. And on Tuesday afternoon Corey Stone, Assistant Director of Credit Information and Deposit Markets, joined a panel for a discussion about overdraft services and small-dollar loans during a breakout session.

On Wednesday afternoon the Ohio Credit Union League also discussed overdraft services with CFPB’s Deposit Markets Program Manager Gary Stein, Elizabeth Ellis, and ‎Senior Advisor, Financial Institutions & Business Liaison Jennifer Stockett.

During this discussion, Stein indicated that he expects the CFPB to hold a Small Business Review panel on overdraft by the end of 2016, and does not expect a rulemaking until 2017.

NCUA Board Members Debbie Matz, Rick Metsger, and Mark McWatters also all presented during the GAC, and NCUA's Gail Laster and Linda Jekel participated in a breakout session entitled, "Regulation vs. Guidance/Best Practices: Implications for Credit Union Examinations and Compliance Efforts." On Tuesday night, there was also an opportunity for GAC attendees to meet several other NCUA staff members.

During the Payments Policy Subcommittee meeting on Monday, Bill Sullivan and Jaime Graham from NACHA and Michael Hoppe and Della Tate from the Federal Reserve Banks provided updates to the subcommittee and answered questions about recent issues in the payments space. Sullivan also distributed a support letter for legislation to end Operation Choke Point.

On Tuesday, 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.

We encourage all GAC participants to continue to weigh in with their regulators through comment letters, as well as other engagement opportunities such as attending field hearings and serving in advisory roles to the agencies. And of course, please continue to contact us directly with questions and concerns about upcoming agency rulemakings.