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 firstname.lastname@example.org.
Add to Calendar 2020-10-22 14:00:00 2020-10-22 14:00:00 Navigating Mergers and Acquisitions During these uncertain times, credit union mergers are a hard reality to face. We strive to strengthen credit unions with as much support as possible to maintain steady growth and success. While NAFCU does not encourage credit unions to merge, we realize mergers are a part of our industry’s reality. Please join us for a discussion on must-know concepts regarding mergers and other similar transactions, including bank and credit union branch acquisitions. This “101” presentation will focus on key concepts that will let you focus on the opportunities that will work for you, and the strategies that will bring you success. Again, NAFCU does not encourage mergers, but if you are considering one, we want you to be armed with helpful information. Key Takeaways Understand how to identify early whether merger or purchase/sale opportunities will bring material benefits Discuss strategic questions to ask your credit union whether merger is right for you (or how to stay independent) Review how to navigate major un-written rules in the application process Gain knowledge about member votes and communications Purchase Now$295 Members | $395 Nonmembers (Additional $50 for CD)One registration gives your entire credit union access to the on-demand recording until October 22, 2021.Already registered? Go to the Online Training Center to view live. Who Should Attend? Chief Executive Officers (CEOs) Executive Vice Presidents (EVPs) Chief Financial Officers (CFOs) Education Credits NCCOs will receive 1.5 CEUs for participating in this webinar NCRMs will receive 1.5 CEUs for participating in this webinar. CPA credit information is below; recommended 1.5 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Associate Director of Education, NAFCU Learning Objectives: Understand how to identify early whether merger or purchase/sale opportunities will bring material benefits. Discuss strategic questions to ask your credit union whether merger is right for you (or how to stay independent). Review how to navigate major un-written rules in the application process. Gain knowledge about member votes and communications. Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.5 credits Recommended Field of Study: Finance – Technical National Association of Federal Credit Unions (NAFCU) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Learn more. About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, D.C. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU email@example.com America/New_York public
Credits: NCCO, NCRM, CPE
Add to Calendar 2020-10-22 14:00:00 2020-10-22 14:00:00 [INTERVIEW] CU Blueprint for Secure Cloud-First Strategies About the Interview “Moving to the Cloud” can seem like an ambiguous, one-time, heavy-lift project, often leading to misunderstanding and analysis paralysis within credit unions. For your CU to stay competitive, you want to deliver a seamless digital experience that's more than flashy applications. It needs to be built on flexible, secure infrastructure that allows innovation. Join us for this panel discussion and learn practical, proven processes to establish and evolve secure, cloud-first strategies. Hear best practices in communication, talent, and technology, and walk away with a blueprint for your secure credit union transformation. Watch the Interview On-Demand Web NAFCU firstname.lastname@example.org America/New_York public
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