The NAFCU Journal January-February 2020 - 21

Agency Engagement

Ann Kossachev,
NAFCU's director of
regulatory affairs

Q: What issues can we expect the NCUA
and CFPB to prioritize this year?
The NCUA spent much of the second
half of last year focused on capital
reform for credit unions, including
delaying its risk-based capital rules and
working on a proposal for a new subordinated debt framework. Credit unions
should expect to see continued focus on
capital reform in 2020, as well as a few
other issues Chairman Hood has identified as priorities: enhancing cybersecurity in the credit union system, reducing
regulatory burden and finding ways to
help underserved communities.
The CFPB has also been looking for
ways to reduce regulatory burden
by evaluating the effectiveness of its
major rulemakings, including the
ability-to-repay/qualified mortgage
rule, the HMDA rule, its overdraft rule
and its rule on remittance transfers.
We expect the bureau to continue its
rulemakings on these topics in addition to hosting more symposia and
town hall meetings to gather information regarding broader issues on
which the CFPB is looking to provide
guidance or a rulemaking.
Q: Do you anticipate any significant
rulemakings that credit unions can
expect to see parity with banks on?
Throughout this year, credit unions
can expect to see more parity in a
few key areas, including capital rules
and lending rules. Movement on a
rulemaking for subordinated debt that
provides all credit unions with access
to supplemental capital would help
align credit unions' ability to issue
debt instruments and access additional
liquidity with that of banks. The NCUA
has also been focused on helping
credit unions implement the Current Expected Credit Losses (CECL)
standard and plans to adopt a phase-in

similar to that recently finalized for
community banks. We also expect the
NCUA to finalize updates to its threshold limit for real estate appraisals on
residential properties to align with
banks' recently finalized rule. If Congress approves changes to the FCUA
that give the NCUA flexibility to adjust
maturity limits, we can also see parity
on lending generally.

Legislative Priorities

Brad Thaler,
NAFCU's vice
president of
legislative affairs

Q: Where does Congress stand on
providing a safe harbor for credit
unions and other lenders that wish to
serve marijuana-related businesses?
With the House passage of the SAFE
Banking Act, the focus is now on the
Senate. In 2019, the Senate Banking
Committee held its first-ever hearing on
this issue. Senate Banking Committee
Chairman Mike Crapo, R-Idaho, has
indicated that he could try to mark up a
bill in this area. It is still unclear if that
would be the House-passed version of
the SAFE Banking Act or a different bill
crafted by the chairman. Either way, the
Senate is a more difficult environment in
which to move a bill like this, and passage this Congress is uncertain. Still, the
historic House action and Senate hearing
show that this is an issue on the congressional radar and that it ultimately needs
to be addressed at some point.
Q: There have been calls from both
financial institutions and lawmakers
to address and decrease Bank Secrecy
Act (BSA) and anti-money laundering
(AML) burdens. Where does this issue
stand in Congress, and what is likely to
be accomplished this year?
The House passed significant BSA/
AML and Beneficial Ownership
reforms in October, and there is some
bipartisan support for addressing
these issues in the Senate, where
a bipartisan bill has already been

THE NAFCU JOURNAL  JANUARY-FEBRUARY 2020

introduced. These reforms are
designed to try to improve the BSA
system. Although it remains an uphill
climb, this is the kind of issue that
could pass into law this Congress, as
a number of the proposals have broad
industry and bipartisan support. The
congressional activity in this area will
also help keep pressure on the regulators to keep taking steps to improve
the BSA regime as well.
Q: Bankers have relentlessly attacked
credit union priorities, including the
credit union tax exemption. What steps
are being taken to educate lawmakers on
the credit union difference?
NAFCU has been very active in
educating Capitol Hill on the value
of credit unions and the credit union
difference in response to these banker
attacks. We have a number of resources
available to share with the Hill, including NAFCU's study on the credit union
tax exemption and an issue brief and
webpage dedicated to outlining the
credit union difference when it comes
to banks. We also believe in pushing
back and telling the truth about banks,
such as the tax breaks they enjoy, and
reminding Congress how banks helped
cause the financial crisis.

Compliance
Landscape

Brandy Bruyere,
NAFCU's vice
president of
regulatory
compliance
Q: What are some data privacy regulation developments that credit unions
should be aware of this year?
While there is bipartisan support
for federal legislation generally, Congress has not been able to establish
momentum behind any single piece
of cybersecurity or privacy legislation.
With the future of a federal law being so
uncertain, many states are studying or
considering privacy and cybersecurity
legislative proposals, three of which
21



The NAFCU Journal January-February 2020

Table of Contents for the Digital Edition of The NAFCU Journal January-February 2020

The NAFCU Journal January-February 2020
Contents
Conferences
From the Chair
2020 Advocacy Priorities
The Bottom Line
Leadership Download
Warning: Speed Bumps Ahead
Stepping Into 2020
2020 Vendor Directory
Executive Spotlight
Management Insight
Compliance Central
Inside NAFCU Services
From the President’s Desk
The NAFCU Journal January-February 2020 - The NAFCU Journal January-February 2020
The NAFCU Journal January-February 2020 - Cover2
The NAFCU Journal January-February 2020 - Contents
The NAFCU Journal January-February 2020 - 2
The NAFCU Journal January-February 2020 - Conferences
The NAFCU Journal January-February 2020 - From the Chair
The NAFCU Journal January-February 2020 - 5
The NAFCU Journal January-February 2020 - 2020 Advocacy Priorities
The NAFCU Journal January-February 2020 - 7
The NAFCU Journal January-February 2020 - The Bottom Line
The NAFCU Journal January-February 2020 - 9
The NAFCU Journal January-February 2020 - Leadership Download
The NAFCU Journal January-February 2020 - 11
The NAFCU Journal January-February 2020 - Warning: Speed Bumps Ahead
The NAFCU Journal January-February 2020 - 13
The NAFCU Journal January-February 2020 - 14
The NAFCU Journal January-February 2020 - 15
The NAFCU Journal January-February 2020 - 16
The NAFCU Journal January-February 2020 - 17
The NAFCU Journal January-February 2020 - Stepping Into 2020
The NAFCU Journal January-February 2020 - 19
The NAFCU Journal January-February 2020 - 20
The NAFCU Journal January-February 2020 - 21
The NAFCU Journal January-February 2020 - 22
The NAFCU Journal January-February 2020 - 2020 Vendor Directory
The NAFCU Journal January-February 2020 - 24
The NAFCU Journal January-February 2020 - 25
The NAFCU Journal January-February 2020 - 26
The NAFCU Journal January-February 2020 - 27
The NAFCU Journal January-February 2020 - 28
The NAFCU Journal January-February 2020 - 29
The NAFCU Journal January-February 2020 - 30
The NAFCU Journal January-February 2020 - 31
The NAFCU Journal January-February 2020 - 32
The NAFCU Journal January-February 2020 - 33
The NAFCU Journal January-February 2020 - Executive Spotlight
The NAFCU Journal January-February 2020 - Management Insight
The NAFCU Journal January-February 2020 - Compliance Central
The NAFCU Journal January-February 2020 - 37
The NAFCU Journal January-February 2020 - Inside NAFCU Services
The NAFCU Journal January-February 2020 - 39
The NAFCU Journal January-February 2020 - From the President’s Desk
The NAFCU Journal January-February 2020 - Cover3
The NAFCU Journal January-February 2020 - Cover4
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