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TDR RegFlex are focus of todays NCUA meeting
ALEXANDRIA, Va. (5/24/12)--Troubled Debt Restructuring (TDR) and Regulatory Flexibility (RegFlex) rule changes will lead the agenda at today's National Credit Union Administration (NCUA) board meeting, which is scheduled to begin at 10:00 a.m. ET.

The Credit Union National Association (CUNA) has supported the NCUA's TDR proposal, which was released earlier this year and would allow credit unions to modify TDR loans without having to immediately classify those loans as delinquent. TDR loans have specific accounting and reporting requirements, and the financial statement and call report treatment of TDRs are also unique.

The NCUA has hinted that the rules could become effective 120 days after they are published in the Federal Register.

CUNA encouraged the NCUA to give small credit unions more time to comply with the TDR changes, and also noted that the TDR proposal's different treatment of member business loans (MBLs) could create issues for credit unions with certain processing systems, forcing those credit unions to manually track MBLs that have been modified.

Another final version of a CUNA-supported proposal, a plan to eliminate the RegFlex program, is scheduled to be presented at today's meeting.

Under the proposal, the NCUA would allow all credit unions to:

  • Donate funds to charities of their choosing;
  • Accept non-member deposits, subject to predetermined limits, from local governmental entities or other credit unions; and
  • Purchase private-label commercial mortgage-related securities, subject to certain net worth constraints and safety and soundness rules.
Other rights would also be granted to credit unions that are not covered under the RegFlex designation.

CUNA supports the goals of this RegFlex proposal, but also suggested the NCUA could go beyond the parameters of this proposal, giving credit unions even greater freedom from burdensome regulations.

The first quarter National Credit Union Share Insurance Fund's first quarter results will also be presented during the meeting.

A final interpretive rule and policy statement on supervisory committees will also be released during the open portion of the meeting, and supervisory activities and an appeal will be addressed during the closed portion of the meeting.

For the full agenda, use the resource link.
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