NAFCU Statement on NCUA’s Ruling on Troubled Debt Restructuring, RegFlex and NCUSIF
WASHINGTON – National Association of Federal Credit Unions (NAFCU) President and CEO Fred R. Becker Jr. today issued the following statement regarding the National Credit Union Administration’s (NCUA) release of final rules for troubled debt restructuring and RegFlex and the quarterly report on the National Credit Union Share Insurance Fund (NCUSIF).
“While NAFCU recognizes that the final diluted RegFlex provisions would apply to all credit unions, they do not go far enough. We remain concerned about revisions to NCUA’s regulations that tighten rules on the acceptance of nonmember deposits and staffing to handle investment products. In addition, we will continue to strongly advocate for removal of the personal guarantee requirement for member business lending and relief from the fixed asset rule and its consequent grandfathering which has remained unworkable.
“NAFCU has long sought relief for credit unions on troubled debt restructuring (TDRs) and we appreciate the changes NCUA made today. Further, we welcome NCUA’s adoption of NAFCU’s recommendation to allow credit unions to determine the aggregate limit for loan workouts, rather than NCUA establishing the limit by rule, as the agency had proposed. However, we continue to strongly object to requirements for written policies on loan work outs. In addition, we will continue to seek modifications to the rule, including applying the new provisions to member business loans.
“NAFCU welcomes the agency’s efforts toward continued transparency in its management of the NCUSIF, but we will continue to strongly urge NCUA to carefully reassess its loss projections, and lower reserve projections accordingly, to keep this year’s corporate stabilization premium assessments to an absolute minimum.
“In addition, we continue to encourage NCUA to seek avenues to minimize undue and unnecessary burdens on credit unions in all NCUA policies.”
The National Association of Federal Credit Unions is the only national organization that focuses exclusively on federal issues affecting credit unions, representing its members before the federal government and the public.