In what CUNA Deputy General Counsel Mary Dunn acknowledged has become a somewhat rare occurrence, CUNA has commented in a largely approving manner on the NCUA's most recent proposal for how CUs should track troubled debt restructured loans.
Currently the agency requires these loans be tracked in a way which CUs have complained is time and work intensive and, in some cases, has actually interfered with the CU's ability to help out economically distressed members.
"CUNA commends Chairman Matz, the other board members, and NCUA senior staff, especially Larry Fazio, for recognizing the concerns raised by CUNA and moving forward on these issues," the association wrote in its March 2 letter.
"We believe the proposal is an important step forward in terms of guidance and reporting requirements for TDRs, and would provide regulatory relief on TDRs generally," CUNA added.
However, as with a similarly approving letter from NAFCU, CUNA had some recommendations for the agency, including that it add some more material to the final form of the regulation describing why the approach is consistent with accounting standards.
"One general issue is that some credit unions are concerned that their accounting practitioners may not agree that the proposal's treatment of TDRs is consistent with GAAP and NCUA should address that concern more thoroughly in the Supplementary Information accompanying the final rule," CUNA added.
