The NAFCU Journal March-April 2020 - 37

need for information and resources on
these changes, and we will keep members updated on these developments.
NCUA has also been testing a virtual
examination program since 2018. As
part of this initiative, the agency is
researching methods to conduct many
exam and supervision aspects off-site.
This can reduce travel time for examiners
while also improving experiences for
credit unions. The program also aims
to reduce coordination challenges and
improve effectiveness and standardization of exams. The virtual exam program
is still in the research and discovery stage,
and a status report is expected to be
provided to the NCUA Board sometime
in 2020. However, this is a long-term
project, with a goal to "transform within
the next five to 10 years the examination
and supervision program into a predominately virtual one for credit unions that
are compatible with this approach."
NCUA also continues a comprehensive
review of the Call Report, in an effort
it describes as a "complement" to the
enterprise solution modernization
program. The agency has conducted
industry outreach over the past few
years and has developed a prototype
of a modernized Call Report including
changes that would accommodate
the transition to CECL. While some
new account codes would be added,
the agency's proposal indicated
there would be "a net reduction of
approximately 40 percent" in the total
number of account codes. It is not
entirely clear yet when these changes
may be finalized, but the completed
forms will be released for public comment at some point.

Automated Cybersecurity Examination
Tool (ACET) and is reviewing what other
resources the agency could make available on its Cybersecurity landing page.
This issue is likely to remain an agency
supervisory priority and continues to be
a focus of examinations. Credit unions
can find NAFCU resources on this issue
at https://www.nafcu.org/compliance/
cybercompliance.
What else may be coming this year?
Last year was the first year that credit
unions subject to the Home Mortgage
Disclosure Act (HMDA) were required
to file the additional data points added
to that rule in 2015. NCUA utilizes
HMDA data for possible outliers, and
if the data falls outside normal ranges,
the agency may conduct a separate fair
lending exam. This is only one of a few
criteria that can lead to a fair lending
exam, with others including consumer
complaints or higher baseline risk for
violations. But with more data points

available, that could mean more room
for outliers whose data leads to additional scrutiny by examiners. Overall, it
is possible that the industry will see an
increase in separate fair lending examinations, although this is not official.
NCUA usually publishes supervisory
priorities early in the year, which generally give more information on the focus
for exams in the coming year and were
not yet published at the time this article
was written. However, fair lending
issues have been among NCUA's supervisory priorities in the past few years.
NAFCU's regulatory compliance
team will continue to keep members
updated on a host of issues, including
exam-related topics and developments,
throughout the year through our
publications, including our Compliance
Blog and our Compliance Monitor.
Brandy Bruyere is vice president of
regulatory compliance for NAFCU.

NCUA Chairman Rodney Hood has
also made cybersecurity one of his
many priorities, including appointing
a special adviser on this key issue. The
agency continues to work on using the
THE NAFCU JOURNAL  MARCH-APRIL 2020

37


https://www.nafcu.org/compliance/cybercompliance https://www.nafcu.org/compliance/cybercompliance

The NAFCU Journal March-April 2020

Table of Contents for the Digital Edition of The NAFCU Journal March-April 2020

The NAFCU Journal March-April 2020 - Cover1
The NAFCU Journal March-April 2020 - Cover2
The NAFCU Journal March-April 2020 - 1
The NAFCU Journal March-April 2020 - 2
The NAFCU Journal March-April 2020 - 3
The NAFCU Journal March-April 2020 - 4
The NAFCU Journal March-April 2020 - 5
The NAFCU Journal March-April 2020 - 6
The NAFCU Journal March-April 2020 - 7
The NAFCU Journal March-April 2020 - 8
The NAFCU Journal March-April 2020 - 9
The NAFCU Journal March-April 2020 - 10
The NAFCU Journal March-April 2020 - 11
The NAFCU Journal March-April 2020 - 12
The NAFCU Journal March-April 2020 - 13
The NAFCU Journal March-April 2020 - 14
The NAFCU Journal March-April 2020 - 15
The NAFCU Journal March-April 2020 - 16
The NAFCU Journal March-April 2020 - 17
The NAFCU Journal March-April 2020 - 18
The NAFCU Journal March-April 2020 - 19
The NAFCU Journal March-April 2020 - 20
The NAFCU Journal March-April 2020 - 21
The NAFCU Journal March-April 2020 - 22
The NAFCU Journal March-April 2020 - 23
The NAFCU Journal March-April 2020 - 24
The NAFCU Journal March-April 2020 - 25
The NAFCU Journal March-April 2020 - 26
The NAFCU Journal March-April 2020 - 27
The NAFCU Journal March-April 2020 - 28
The NAFCU Journal March-April 2020 - 29
The NAFCU Journal March-April 2020 - 30
The NAFCU Journal March-April 2020 - 31
The NAFCU Journal March-April 2020 - 32
The NAFCU Journal March-April 2020 - 33
The NAFCU Journal March-April 2020 - 34
The NAFCU Journal March-April 2020 - 35
The NAFCU Journal March-April 2020 - 36
The NAFCU Journal March-April 2020 - 37
The NAFCU Journal March-April 2020 - 38
The NAFCU Journal March-April 2020 - 39
The NAFCU Journal March-April 2020 - 40
The NAFCU Journal March-April 2020 - Cover3
The NAFCU Journal March-April 2020 - Cover4
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