Share Insurance Fund Update, CECL Guidance on NCUA Board’s Thursday Agenda
Members of the New York Taxi Workers Alliance have indicated to CU Times they will once again attend the board meeting.
The NCUA board will receive an update on the state of the agency’s Share Insurance Fund when it meets Thursday morning.
The board also will discuss guidance the banking agencies have proposed regarding the controversial Current Expected Credit Loss standard.
Under the CECL standard, institutions will have to recognize the expected lifetime losses at the time a loan or financial instrument is recorded. The effective date of CECL has been pushed back until January 2023 for credit unions.
The NCUA has the authority to phase in the CECL standard, as the agency measures its impact, NCUA Chairman Rodney Hood said.
The board also will consider a proposed rule governing corporate credit unions and receive a briefing on mortgage rates.
Although they are not scheduled to address the board, members of the New York Taxi Workers Alliance have said they will attend the meeting, as they did last month.
The NCUA holds thousands of taxi medallion loans as a result of the failure of Melrose Credit Union and LOMTO Federal Credit Union — two institutions that made a high concentration of loans to medallion owners.
As taxi drivers faced increasing competition from ride-sharing services, the value of their medallions dropped.
The medallion owners are pressing the NCUA to sell the loans to entities that would be willing to renegotiate the terms of the loans.