Removing Barriers Blog

Credit Union Concerns Raised During HFSC Hearing with Financial Regulators
Posted May 16, 2019 by CUNA Advocacy

The House Financial Services Committee held a hearing with the financial regulators similar to this week's Senate Banking Committee hearing.  During the hearing, Members of the Committee cited CUNA data on the current expected credit loss (CECL) standard. CUNA wrote to Chairwoman Waters and Ranking Member McHenry prior to the hearing raising the CECL concerns, as well as praising NCUA for its modernization efforts and listing several improvements NCUA could make -- this letter was similar to the letter sent to Chairman Crapo and Ranking Member Brown in the Senate Banking Committee.

The Ranking Member of the House Financial Services subcommittee on consumer protection and financial institutions, Representative Luetkemeyer (R-MO), cited data CUNA has sent to Capitol Hill about the negative effects CECL might have on credit union products and services and asked Hood his thoughts on the standard.

“I share the concerns that have been raised, by the industry groups you’ve cited. We as an agency are also doing our own internal studies with our chief economist,” Hood said. “I find the operational burdens that are going to be imposed by CECL to really be difficult for our smaller credit unions to manage and operate in that environment. We will need some assistance from FASB to address some of these issues.

CUNA thanks the members of the committee and Chairman Hood for highlighting credit union concerns with CECL and using CUNA data to illustrate the negative impact this standard could have and agreeing that something needs to be done. 

On behalf of America's credit unions and their 115 million members, CUNA will continue engagement with NCUA, FASB and Congress to find a solution for credit unions and the 115 million Americans they serve.