NCUA is encouraging credit unions to work with members who face difficulty in making their loan payments as a result of the coronavirus.
“NCUA will not require these coronavirus-related loan modifications to be converted into troubled debt restructurings as long as the modifications are done in a safe and sound manner,” said Michael Lee, LSCU director of regulatory affairs. “The NCUA, along with the other financial regulators, consulted with the Financial Accounting Standards Board that good faith loan modifications under these circumstances would not be troubled debt restructurings. The statement further refers to some specific instances for credit unions to consider like past due reporting, non-accrual status and charge-offs.”
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