The National Credit Union Administration (NCUA) has finalized a requirement for federally-insured credit unions to maintain written policies that address the management of loan workout arrangements and nonaccrual standards for loans, consistent with industry practice or Federal Financial Institution Examination Council (FFIEC) requirements. The rule includes guidelines that assist credit unions in complying with the rule, including loan workout policies and monitoring requirements; the regulatory reporting of troubled debt restructured loans (TDRs) in Call Reports; and loan nonaccrual policies. These guidelines are described in Exhibits A through D of this release.
This release includes later guidance from NCUA Supervisory Letter No. 13-02 Examiner Review of Loan Workouts, Nonaccruals and Regulatory Reporting of Troubled Debt Restructured Loans, (March 2013) , including a very helpful TDR decision flow chart. The NCUA has issued further guidance in Accounting Bulletin No. 14-1 (September 30, 2014) regarding Interagency Regulatory Reporting Policy on Accounting for a Subsequent Restructuring of a Troubled Debt Restructuring. The full guidance is not included in the release, but the table of contents is provided in Exhibit G.