WASHINGTON–In response to a call to action by CUNA, more than 480 letters have been sent to the Financial Accounting Standards Board urging it to move carefully and to take into account credit union concerns related to its proposal on Current Expected Credit Losses (CECL).
The trade group said it has seen some “positive movement” from FASB, including a willingness to back off the sophisticated models it had initially proposed. But CUNA noted FASB has not backed away from some of the operational burdens that the proposal would create.
The letters to FASB have primarily been generated by members of the CUNA Lending Council and CUNA CFO Council. CUNA reminded that FASB is not a political entity and as a result is a little more “impervious” to any political pressure, which puts a premium on grassroots input.
“A lot of these letters are based on the experience of the individual credit union,” said CUNA’s Chief Political Officer, Richard Gose. “We’re really trying to get the stories and show the real effects; we want to get these standards right.”