America's Credit Unions' Statement on NCUA exam update, more...

Jim Nussle

NCUA removes reputation risk concepts from examination & supervisory process
"America's Credit Unions appreciates the NCUA heeding our call to eliminate reputational risk as a component of its exams and supervision. As we previously shared, this component invited subjective interpretations and raised concerns about potential abuse. Credit union exams must focus on actual and measurable risks to financial condition. We thank Chairman Hauptman for listening to the industry and addressing this issue. We will continue to work with the agency to ensure exams remain focused on the safety and soundness of credit unions." - Jim Nussle, America's Credit Unions President/CEO

• America's Credit Unions sent a letter to Chairman Hauptman in June calling for this change

Government shutdown resources
While government shutdowns always add financial concerns and uncertainty, this year’s threat has the added element of potential permanent layoffs. The Office of Management and Budget (OMB) is instructing agencies to prepare reduction in force (RIF) plans for programs that are not legally required to continue. This means that workers identified in these plans could face permanent job losses. Historically, federal government employees who are not deemed essential are furloughed without pay, and then receive back-pay once the shutdown ends. OMB has confirmed that the reduction in force will not take place should Congress successfully pass a clean short term funding bill by September 30, 2025. 

We have resources available online to support credit unions and will continue to provide updates as funding discussions continue.

Comments on CFPB proposal
A recent CFPB proposal to adopt a standard definition to designate nonbanks for CFPB supervision would create an uneven playing field for credit unions. In comments filed with the bureau Thursday, America’s Credit Unions expressed appreciation to the bureau for working to limit regulatory burdens, while also raising these concerns about the impact to credit unions.  

“As it stands, credit unions are extensively supervised by two regulatory agencies while non-depository institutions like fintech companies are not. Consequently, credit unions would be subject to far more compliance costs and a massive competitive disadvantage,” the letter reads.  

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