Credit unions need to be more tough-minded on loan modifications, willing to say "no" but still look for ways to accommodate borrowers with alternative products, a Florida regulator told CU executives Wednesday.

Addressing the first joint gathering of the League of Southeastern Credit Unions in Orlando, Robert Hayes, chief of Florida's Credit Union Regulation unit, said, "sometimes you have to say no to a situation that you find yourself in" considering it might be wise "to face the reality today instead of putting it off until tomorrow, which is uncertain. Don't kick it down the road."

Hayes, accompanied by a team of regulators from the state division speaking at a session on compliance, urged CU leaders "to have the courage to help the member have a sustainable plan."