The director of regulatory affairs for the National Association of Federal Credit Unions has sent a letter to the National Credit Union Administration urging the agency to undertake promised and much needed regulatory relief.

Alicia Nealon’s letter to the NCUA regarding the agency’s 2015 Regulatory Review asks NCUA to implement further regulatory relief during its 2015 review of its regulations — particularly those relating to fields of membership, credit union bylaws and loan participations.

Nealon also highlights NAFCU’s revised “top ten” list of regulations to eliminate or amend, which is attached to her letter.

“Acknowledging this increasing regulatory burden, NCUA Chairman Matz announced in March 2015 that the agency was ‘committed to making 2015 the year of regulatory relief,’” Nealon writes. “NAFCU agrees that the agency needs to focus on ways to provide much-needed relief to credit unions, many of whom are struggling to survive in a post-Dodd-Frank environment characterized by overwhelming compliance burdens.”

Nealon also raises concerns about the Financial Accounting Standards Board’s plans to finalize a new standard for the financial reporting of credit losses, which she notes would require credit unions to artificially increase balance sheet allowances and reduce available capital.

Nealon reiterates NAFCU’s concerns about CFPB’s planned payday rulemaking – which could negatively impact credit unions’ affordable payday alternative loans.

Among Nealon’s suggestions for regulatory updates are:

  • streamline the process of applying for FOM expansions or conversions and remove non-statutory requirements imposing geographic- and population-based limitations on community charters;
  • modernize the federal credit union bylaws to give credit unions more flexibility; and
  • hold federal credit unions and federally insured, state-chartered credit unions to the same standards for risk retention under the agency’s loan participation regulations.

Nealon also writes about NAFCU’s suggestions relating to executive compensation, designation of low-income status, fixed-assets, capital adequacy, investment and deposit activities, and credit union mergers.

NAFCU’s list of priorities can be read found here and and the full text of her letter can be found here.