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Cheney Report: CUs Concerned About Call Report Changes
WASHINGTON (6/10/13)--Credit unions are concerned that a rule going into effect June 30 that changes how credit unions define delinquent loans in call reports could drive up the number of reportable loans for some credit unions, Credit Union National Association President/CEO Bill Cheney said in the most recent issue of The Cheney Report.

CUNA has brought the matter to the attention of senior NCUA staff, Cheney said.

Under the change announced last October, the definition of a delinquent loan will be based on the number of days delinquent--60--rather than the number of months--two.

The NCUA approved the change to bring its definition into line with that of the federal bank regulators.

"The effect, however," Cheney notes, "is that a seemingly nominal change is driving up the number of reportable loans for some credit unions. This is a particular problem for real estate loans, which are typically due on the first of the month."

Using days instead of months to determine reporting can significantly affect the timing of when and if these loan must be reported as delinquent.

Cheney noted that one credit union told CUNA the change would more than double its delinquency rate on the June report.

CUNA's Examination and Supervision Subcommittee, as well as CUNA staff, will continue to pursue the issue with the NCUA.

Use the resource link to read the full Cheney Report.
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