Creating Influence

Washington, D.C.: Federal Regulator Activity, and What’s on the Horizon

While both the U.S. Senate and House are on recess until after the November elections, there’s activity of interest to credit unions happening in Washington, D.C., particularly in regard to the federal regulator.  Some key points:

  • On October 17th, NCUA held its budget briefing in which CUNA Chief Economist Mike Schenk testified on behalf of credit unions. During his segment, Schenk applauded the NCUA decision to merge the Temporary Corporate Credit Union Stabilization fund into the Share Insurance Fund (NCUSIF), totaling $735 million, and urged for the equity distribution to credit unions and their members.
  • On October 18th, the NCUA Board voted to approve the final risk-based capital rule, which has a delayed implementation date of Jan. 1, 2020 to provide time to comply, and raises the threshold for risk-based capital compliance to $500 million in assets.

What’s coming next?  During his remarks regarding the RBC proposal, NCUA Board member Rick Metsger mentioned that the agency can now turn its attention to developing a rule on alternative capital.   But beyond the federal regulator actions, something to watch on a national level will be the new credit scoring model that Fair Isaac Corp., the maker of FICO scores, will put in place next year.  Several news outlets are highlighting this new score as a way to offer second-chance options by lenders and increase the ability of consumers to obtain credit.  Stay tuned!

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