Comments Due to NAFCU: NCUA - Capitalization of Interest
NAFCU would like to highlight the following:
- The proposed rule would remove the current prohibition on authorizing additional advances to finance unpaid interest as it is burdensome and hampers federally-insured credit unions (FICUs) efforts at loan workouts.
- The rule would establish documentation requirements to ensure a borrower’s ability to become current on the loan. Additionally, the FICU should balance the best interests of the credit union and the borrower in deciding whether capitalization of interest is appropriate.
- This change applies to workouts of all types of member loans, including commercial and business loans
Comments due to NAFCU: January 15, 2021
Comments due to NCUA: February 2, 2021
NAFCU will send comments on behalf of its members to the NCUA by their deadline (January 15, 2021).