There’s no sugar coating the fact that things are about to get real for credit union lenders. As an untold number of members ask their credit unions to follow through on CARES Act promises, lending teams are likely to be stretched thin as they work out an entirely new set of muscles.
For many credit unions, forbearance agreements are not an aspect of business as usual (But then again, what is these days?). Therefore, team members may be rightly nervous about stepping too far out of procedural and regulatory bounds. One way to alleviate their concerns is to adopt the ritual of copious documentation.
If you’re wondering how exhaustive paperwork is supposed to calm nerves, allow me to explain…
When credit union leaders are challenged to make fast decisions, especially when embroiled in highly unusual situations, regulators have been known to relax criticism… if the credit union can provide evidence of how and why certain decisions were made. Although there are limits to any regulator’s leniency, documented timelines, reasoning and outcomes can help an examiner justify his or her finding.
continue reading »