Proposed Rule Would Require Written Policies on Loan Workouts and Nonaccrual Policies

This story appeared in Bank Digest.

The National Credit Union Administration has issued a proposed rule to require federally insured credit unions (FICUs) to maintain written policies that address the management of loan workout arrangements and nonaccrual policies for loans, consistent with industry practice or Financial Institutions Examination Council requirements. The proposed rule includes guidelines set forth as an interpretive ruling and policy statement (IRPS) and incorporated as an appendix to the rule that will assist FICUs in complying with the rule, including the regulatory reporting of troubled debt restructured loans in FICU Call Reports. The NCUA Board believes this proposal and IRPS is timely considering the growth of these types of loans during the recent economic stresses experienced in the financial industry.