Newsroom
FI regulators revise guidance on TDRs
The NCUA yesterday joined with other federal and state regulators to release a revised interagency statement encouraging financial institutions to work constructively with borrowers impacted by the coronavirus and providing additional information regarding loan modifications. The revised statement also clarified interactions between the original interagency statement released last month and the temporary relief provided by the CARES Act.
Section 4103 of the CARES Act allows financial institutions to suspend the requirements to classify certain loan modifications as troubled debt restructurings (TDRs). The revised joint agency statement indicated that institutions will not be criticized for their “prudent efforts to modify terms on existing loans for affected customers” regardless of whether modifications are considered TDRs or are adversely classified.
On the topic of loan modifications, the agencies noted that prudent loan modifications are “positive and proactive actions” that, when offered to those affected by the coronavirus, have the ability to “manage or mitigate adverse impacts on borrowers, and lead to improved loan performance and reduced credit risk.” The statement provided additional supervisory interpretations on past due and nonaccrual reporting of loan modification programs.
Late last month, NAFCU President and CEO Dan Berger urged the NCUA to offer further flexibility and relief regarding the anticipated uptick in TDRs due to businesses and consumers being unable to recover in time to resume normal payments within the next six months.
Berger called for the NCUA to further ease compliance requirements for loan modifications by reinterpreting the capitalized interest section of Part 741 Appendix B to be consistent with the requirements of Fannie Mae and Freddie Mac, the government-sponsored enterprises (GSEs), and provide parity with banks.
To assist with NAFCU's advocacy efforts, credit unions are encouraged to email any updates on how their institution is being impacted and steps that they are taking to help members to advocacy@nafcu.org.
Access the association’s summary of the CARES Act's key provisions. Stay tuned to NAFCU Today for the latest developments and visit the association's coronavirus resource page.
Share This
Related Resources
Add to Calendar 2024-06-26 14:00:00 2024-06-26 14:00:00 Gallagher Executive Compensation and Benefits Survey About the Webinar The webinar will share trends in executive pay increases, annual bonuses, and nonqualified benefit plans. Learn how to use the data charts as well as make this data actionable in order to improve your retention strategy. You’ll hear directly from the survey project manager on how to maximize the data points to gain a competitive edge in the market. Key findings on: Total compensation by asset size Nonqualified benefit plans Bonus targets and metrics Prerequisites Demographics Board expenses Watch On-Demand Web NAFCU digital@nafcu.org America/New_York public
Gallagher Executive Compensation and Benefits Survey
preferred partner
Gallagher
Webinar
Add to Calendar 2024-06-21 09:00:00 2024-06-21 09:00:00 2024 Mid-Year Fraud Review Listen On: Key Takeaways: [01:16] Check fraud continues to be rampant across the country. Card fraud is affecting everyone. [04:31] Counterfeit US passport cards are just another new toolbox in the bad actors’ toolbox. [07:21] Blocking the fallback is the only way to defeat counterfeit cards. [11:17] The best way is constant education to your members in as many channels as you can. [13:02] We are still seeing overdraft lawsuits. Make sure the programming you have at your credit union matches what you have displayed for the members. Web NAFCU digital@nafcu.org America/New_York public
2024 Mid-Year Fraud Review
Strategy & Growth, Consumer Lending
preferred partner
Allied Solutions
Podcast
Add to Calendar 2024-06-21 09:00:00 2024-06-21 09:00:00 The Evolving Role of the CISO in Credit Unions Listen On: Key Takeaways: [01:30] Being able to properly implement risk management decisions, especially in the cyber age we live in, is incredibly important so CISOs have a lot of challenges here. [02:27] Having a leader who can really communicate cyber risks and understand how ready that institution is to deal with cyber events is incredibly important. [05:36] We need to be talking about risk openly. We need to be documenting and really understanding what remediating risk looks like and how you do that strategically. [16:38] Governance, risk, compliance, and adherence to regulatory controls are all being looked at much more closely. You are also seeing other technology that is coming into the fold directly responsible for helping CISOs navigate those waters. [18:28] The reaction from the governing bodies is directly related to the needs of the position. They’re trying to help make sure that we are positioned in a way that gets us the most possibility of success, maturing our postures and protecting the institutions. Web NAFCU digital@nafcu.org America/New_York public
The Evolving Role of the CISO in Credit Unions
preferred partner
DefenseStorm
Podcast
Get daily updates.
Subscribe to NAFCU today.