Supervisory letter says risk-based approach should be taken to examining troubled debt management at credit unions.
Change follows exam appeal by Commodore Perry FCU that was elevated to the Supervisory Review Committee.
Troubled debt restructuring rule focus of Sept. 20 webinar by agency, accounting firm.
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...
“Everybody in California is jumping up and down about this,” Patelco CFO Scott Waite said of the new rule.
The reduced compliance burden, as a result of new NCUA rules introduced during the regulator’s May 24 board meeting, is worth $8 million to federally insured credit unions.
Final rules passed at the NCUA board meeting May 24 include the extension of regulatory flexibility standards to all credit unions, and new rules for troubled debt restructuring that will require written loan workout and nonaccrual policies.
What is the reduced compliance burden, as a result of Thursday’s new NCUA rules, worth to credit unions?
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.
The NCUA achieved a rare feat this week when it released its proposed rule on troubled debt restructuring: favorable reviews from two of its most frequent critics.