PORTLAND, Maine (12/20/11)--The Maine Credit Union League hosted a meeting Dec. 13 of state-chartered credit unions and the state Bureau of Financial Institutions. Representatives from the bureau and credit unions discussed topics including call report issues, recent rules, a foreclosure survey, troubled-debt restructuring and the upcoming legislative session.
Christian Van Dyck of the bureau outlined the effects of recent rule activity on credit unions. This includes a new rule that repeals and replaces the previous Tangible Net Benefit Rule so that it no longer applies to supervised financial organizations; and a repeal of the Truth-In-Lending, Regulation Z-2, rule (Weekly Update Dec. 16).
The Maine league worked closely with the bureau to help craft the final language of the new rule, which now follows Reg. Z. Both rules became effective Sept. 28.
An issue with the call report and corporate assessments also was covered. The bureau's Christine Pearson said that credit unions cannot accrue corporate assessments. "This is not permissible, and the National Credit Union Administration (NCUA) has also been very clear on this issue," Pearson said. "These assessments can only be recorded after the NCUA board declares it."
Bob Studley of the bureau reviewed the definition of Troubled Debt Restructuring (TDR) as "a restructured or modified loan where the creditor, for economic or legal reasons related to the debtor's financial difficulties, grants a concession to the debtor that it would not otherwise consider."
He reiterated that a TDR loan remains so for the duration of the loan. Superintendent Lloyd LaFountain said the bureau expects to be involved in legislative activity in the upcoming session, but will have a clearer picture once the session begins.
The bureau has been reaccredited for another five years, is not looking to raise assessments, and will continue to hold the daily examination rate at the same rate it had for the past three years, LaFountain said.
"This meeting was a productive dialogue between the bureau and state-chartered credit unions, and an important meeting in continuing efforts to maintain a strong, dual-chartering system," concluded Maine league President John Murphy.