The National Credit Union Administration should delay changes to the credit union Call Report system since the agency has failed to provide “meaningful and proactive communication,” about the changes, National Association of Federally-Insured Credit Union President/CEO B. Dan Berger argued last week.
“The changes proposed in the NCUA’s notice in the Federal Register are plentiful, and the NCUA has not provided sufficient advanced communication to guarantee industry readiness,” Berger wrote in a letter to the agency board.
In a jab at the agency, Berger noted that in January, the NCUA issued a Request for Information seeking ways to improve its communications with credit unions. “It would appear from the manner of publication and level of detail present in the current proposal, the NCUA has not put the feedback it received from that RFI into practice,” Berger wrote.
Berger said the NCUA first unveiled plans to modernize data collection at its May 2016 board meeting. Later that year, the agency issued a request for comments on the data collected in the call report, leading to a modernization effort in 2018.
“Since then, the NCUA has published minimal information about the changes or the timeline toward implementation,” Berger said. Then on Sept. 27, the NCUA published a notice seeking comment on changes that will, among other things, streamline the schedules and retire obsolete account codes. The NCUA will accept comment on the plan until Nov. 26. Berger said the proposal includes hundreds of changes to the Call Report.
He said the NCUA should extend the comment period for the proposal to provide credit unions with sufficient time to evaluate the impact of changes. He added that the agency also should postpone the effective date of call report changes from March 2022 to January 2023.