CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Jobs
  • Contact

News

Home » Compliance: What to consider as 2020 comes to an end
Compliance Subscribers

Compliance: What to consider as 2020 comes to an end

NCUA encourages credit unions to prudently work with borrowers.

November 24, 2020
Nancy DeGrandi
No Comments
Compliance: What to consider as 2020 comes to an end

Ten months ago, who would have thought there would be pandemic-related mask ordinances, splash guards at teller windows, and social distance decals on the floors of branch lobbies?

The only constant has been credit unions’ commitment to doing what they do best: assisting and serving their members.

In addition, regulators have issued a seeming onslaught of agency guidance and regulatory changes since the beginning of the coronavirus (COVID-19) pandemic. Although we can’t predict what may be in store in the coming months, here’s a snapshot of issues to consider as we try to get through the end of 2020.

NCUA’s exam posture remains as it was since the start of the pandemic, with most exams occurring off-site and materials shared electronically and securely.

At the beginning of 2020, NCUA announced one of its priorities would be the review of credit union loan programs and underwriting standards and procedures. As a result of the pandemic, NCUA instead shifted the emphasis to reviewing actions credit unions have taken to assist members facing financial difficulties.

Credit unions may be experiencing an uptick in examiner requests for policy reviews and the use of loan workout strategies. Of interest are credit unions’ risk management controls and how credit unions are assisting those experiencing financial hardships due to the pandemic.

Based on NCUA exam guidance and interagency statements, the agency is encouraging credit unions to prudently work with borrowers. From the onset of the pandemic, guidance stated that well-structured loan accommodations in this environment are to be viewed as positive actions to mitigate the adverse effects COVID-19 is having on borrowers and facilitate a credit union’s ability to collect on its loans.

These agency issuances offer prudent risk management and consumer protection practices and guidance on meeting accounting and regulatory reporting requirements. They also stress the importance of sound internal controls in this current environment.

So, let’s talk additional accommodations. Now that we’re approximately 10 months into the pandemic, many of the accommodations provided to members are nearing or at their end.

While some member borrowers are in a reasonable capacity to repay and can resume payments, others, unfortunately, cannot. They’re likely feeling the pressure of looming payments and realizing they’ll likely face continued financial hardship for the foreseeable future.

A Federal Financial Institutions Examination Council (FFIEC) joint statement issued in August addressed additional loan accommodations for borrowers. Following are some issues to consider.

NEXT: Communications to the borrower

Previous 1 2 3 Next
KEYWORDS coronavirus NCUA supervisory committee

Post a comment to this article

Report Abusive Comment

Credit Union Magazine: Winter 2022

Winter 2022

Credit Union Magazine’s Winter 2022 issue highlights data-driven marketing, the board’s role in cybersecurity, elder abuse scams, credit unions’ auto lending advantage, and more.
Digital Edition •  Subscribe

Trending

  • House passes CUNA, League-led board modernization bill

  • Reps introduce bipartisan Credit Union Board Modernization Act

  • What workers want

Tweets by CUNA_News

Polls

Vote for the 2023 CU Hero of the Year

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us