WASHINGTON–America’s Credit Unions is calling on NCUA to dial back its final rule on succession planning and make it guidance, instead.
Noting that when the final succession planning rule was OK’d by the board in 2024, then Vice Chairman Kyle Hauptman voted in favor only after some revisions were made to the proposed rule, the trade group also reminded that now Chairman (and lone board member) Hauptman had said the intent of the rule is to protect smaller, federally insured credit unions from unintended mergers.
Hauptman expressed skepticism that the rule would achieve that aim, America’s CUs stated, adding that final rule requires the agency to reapprove the rule in three years, and Hauptman said it should be rescinded if there are no clear, identifiable benefits in that timeframe.
Letter Calls for Shift
In a letter to NCUA, America’s Credit Unions repeated its position that it believes there is a need for significant changes and called on the NCUA to rescind and repropose.
Regulatory Advocacy Senior Counsel Luke Martone wrote that the focus of the succession planning rule should shift from a mandatory requirement to a guidance-based approach that offers practical support to credit unions.
“This approach would ensure credit unions receive valuable information from the NCUA without imposing overly rigid compliance requirements,” wrote Martone.
Share Insurance Simplification
Meanwhile, on the share insurance simplification rule, America’s Credit Unions offered support while asking the agency to provide comprehensive transition guidance and extend the compliance timeframe as credit unions work to inform members and comply with the changes.
The full text of that letter can be found here.
NCUA Provides CECL Update
Separately, NCUA said the June 2025 updated “simplified tool” for credit unions to use in calculating current expected credit losses (CECL) facilitates calculating the credit loss expense on loans and leases for the period ending June 30. The updated portions are known as the Weighted Average Remaining Maturity (WARM) factors.
The latest update is part of the quarterly change conducted by the agency. The quarterly change facilitates the filing of call reports, according to NCUA.
The agency added the tool is designed for use mostly by small and “non-complex” credit unions (those with $500 million or less in assets).
Option for Estimating Allowances
Furthermore, NCUA said, the tool is an option for estimating the allowance for credit losses on loans and leases.
“Credit unions with assets of less than $10 million may also consider using the Simplified CECL Tool, as it could provide a more accurate measure of credit losses and serve as an additional tool for loan portfolio management,” NCUA stated.hey need to ensure they are ready to provide those services to their members all across the country.”
