CUNA, MCUL Collaboration Leads to NCUA Rule Change (Misc News: February 2, 2012)
A proposed NCUA rule change on troubled debt restructuring (TDR) which was heavily advocated by both MCUL and CUNA could provide some regulatory relief for credit unions nationwide.
Under the proposal, the agency would remove the requirement that credit unions report TDRs as delinquent on call reports after six months. Additionally, federally insured credit unions would be required to have written loan workout policies, and would be mandated to calculate and report troubled debt restructuring loan delinquency based on restructured contract terms.
Recognizing the burden the TDR requirement has placed on many credit unions, CUNA President and CEO Bill Cheney said the proposal has “the potential to ensure consistent guidance from the agency to its examiners – and help credit unions help their members in this time of need.’’
MCUL & Affiliates CEO David Adams said the proposed change is an illustration of advocacy in action. “Our goal as a league is to listen to our members, to do what we can to ensure their concerns are being heard, and to translate those concerns into action that ultimately will impact the whole credit union community.”
The proposed rule has been sent out by the NCUA Board for a 30-day comment period.