Capitalization of Unpaid Interest: A Letter to Credit Unions
www.marktreichel.com
https://www.linkedin.com/in/mark-treichel/
https://www.linkedin.com/in/mark-treichel/
Connect with us on LinkedIn.
https://www.linkedin.com/in/mark-treichel/
Understanding NCUA's Capitalization of Unpaid Interest Regulation
This episode of Samantha Shares delves into the NCUA's letter to credit unions (23CU07), detailing the Capitalization of Unpaid Interest. It explains the unanimous vote by the NCUA Board on June 24, 2021, to allow interest capitalization in loan workouts and modifications, effective from July 30, 2021. The regulation aims to help borrowers facing financial hardships by offering various modification options like lowering payments, extending maturity dates, and capitalizing interest, ensuring these modifications are conducted under safe and sound lending practices. It emphasizes consumer protection, adherence to documentation requirements, and considerations for credit risk. The podcast also covers Q&A on loan modification policies, determining borrower's repayment ability, required disclosures, and acceptable methods for interest capitalization. Sponsored by Credit Union Exam Solutions Inc.,
00:00 Welcome to Samantha Shares: NCUA Letter Overview
00:17 Sponsor Shoutout and Additional Resources
00:46 Diving Into the NCUA Letter: Capitalization of Unpaid Interest
02:23 Consumer Protection and Credit Risk Considerations
04:05 Q&A: Understanding Loan Modification Policies
07:30 Concluding Remarks and Contact Information
https://www.linkedin.com/in/mark-treichel/
Understanding NCUA's Capitalization of Unpaid Interest Regulation
This episode of Samantha Shares delves into the NCUA's letter to credit unions (23CU07), detailing the Capitalization of Unpaid Interest. It explains the unanimous vote by the NCUA Board on June 24, 2021, to allow interest capitalization in loan workouts and modifications, effective from July 30, 2021. The regulation aims to help borrowers facing financial hardships by offering various modification options like lowering payments, extending maturity dates, and capitalizing interest, ensuring these modifications are conducted under safe and sound lending practices. It emphasizes consumer protection, adherence to documentation requirements, and considerations for credit risk. The podcast also covers Q&A on loan modification policies, determining borrower's repayment ability, required disclosures, and acceptable methods for interest capitalization. Sponsored by Credit Union Exam Solutions Inc.,
00:00 Welcome to Samantha Shares: NCUA Letter Overview
00:17 Sponsor Shoutout and Additional Resources
00:46 Diving Into the NCUA Letter: Capitalization of Unpaid Interest
02:23 Consumer Protection and Credit Risk Considerations
04:05 Q&A: Understanding Loan Modification Policies
07:30 Concluding Remarks and Contact Information
Are you worried about an NCUA exam in process or looming on the horizon? Don't face it alone!
We're ex-NCUA insiders with decades of experience, ready to guide you to success. Our team understands the intricacies of NCUA examinations from the inside out.
Hire us and gain:
• Peace of mind during your exam process
• Insider knowledge of NCUA procedures and expectations
• Strategies to address potential issues before they become problems
• Continuous access to our extensive subject matter expertise
With our access retainer, you'll have on-demand support from former NCUA experts. We're here to ensure your credit union achieves flying colors in its next examination.
Contact Credit Union Exam Solutions today to learn more about our services and how we can help your credit union succeed.
