Credit unions that have restructured loans for struggling members no longer have to pay the price on their financial performance reports. That's because a final rule released in May by the NCUA, which applied GAAP standards to the reporting of delinquent restructured residential mortgage loans, included a provision that released credit unions from reporting troubled debt restructured loans as delinquent until the borrower had made six months' worth of consecutive, on-time payments.
The rule brought NCUA up to speed with other financial regulators like the FDIC and Federal Reserve, which had been following GAAP standards that only required TDRs be reported as delinquent consistent with other loans.
For credit unions, that means TDRs are now reported delinquent on Call Reports only after falling 60 days past due.
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