WASHINGTON–One congressman says he is doing all he can to help credit unions deal with the effects of CECL, making it clear he’s not a supporter of the new accounting standard.
Rep. Ted Budd (R-NC), a member of the House Financial Services Committee, told NAFCU’s Congressional Caucus here he is not just concerned with how CECL will affect credit unions, but members, as well.
Budd focused on three CECL-related issues:
Things That Have Happened With CECL
Budd noted he submitted legislation to delay CECL that he said was critical to urging FASB to delay the new standard for credit unions to January of 2023. He has requested another Quantitative Impact Study to keep the pressure on the accounting board.
Things Happening Now
Budd says he wants to “defang” FASB so it can’t do something like CECL again “without going through the proper procedures. “This is a monumental decision they are making, and I know you do not feel included in the process. From here on out they have to hear your concerns. This isn’t about removing their independence.”
The Impact CECL Would Have
Budd said CECL represents the largest change to accounting that credit unions have ever seen, and “yet despite this, FASB is moving forward with CECL implementation without thought to the impact on you and your members. It will affect cost and availability of credit, and affect ability of credit unions to make loans during any downturn.”
“I will keep fighting the good fight on this, but I need your help,” he said. “I need you to tell your stories to Congress.”