Comments Due to NAFCU: NCUA - Capitalization of Interest

Important Regulatory Dates Add to Calendar 2021-01-15 17:00:00 2021-01-15 17:00:00 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 Comment now   NAFCU will send comments on behalf of its members to the NCUA by their deadline (January 15, 2021). Location NAFCU digital@nafcu.org America/New_York public

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

Comment now  

NAFCU will send comments on behalf of its members to the NCUA by their deadline (January 15, 2021).