CONTACT: Patty Briotta
WASHINGTON – National Association of Federal Credit Unions (NAFCU) President and CEO Fred R. Becker today issued the following statement regarding the National Credit Union Administration’s (NCUA) announcement on the interest-rate risk policies, troubled debt restructuring and derivatives.
“NAFCU has been steadfast in urging NCUA to address the issues of troubled debt restructurings (TDRs) since the fall of 2010. We appreciate that the NCUA is removing the hardline requirement that credit unions report TDRs as delinquent on call reports after six months. This gives credit unions much-needed flexibility in this matter. We do have concerns with NCUA’s new proposal that credit unions have formal written policies regarding loan modifications; we will be closely monitoring the burden of this aspect of the proposal with our members.”
“In terms of interest-rate risk (IRR), NAFCU has pushed for improvements in NCUA’s approach to credit unions’ IRR policies. NAFCU supports, in part, NCUA’s efforts to ensure credit unions have an interest-rate risk policy in place. However, we want to hold NCUA to its promise that it will not examine credit unions on a one-size-fits-all approach and will truly allow credit unions to formulate a policy that fits its risk profile.”
“In all of NCUA’s actions, NAFCU strives to ensure that there are no additional burdens on credit union reporting or policies.
“Regarding derivatives, NAFCU supports authority for credit unions to use derivatives as a risk management tool.”
NAFCU is the only national organization that focuses exclusively on federal issues affecting credit unions, representing its members before the federal government and the public.