Now is the time where proactive, constructive assistance to borrowers is needed and in doing so, will demonstrate the Credit Union difference. Preemptively working with your members to help them with short-term solutions not only helps them, it may mitigate future economic impact to your credit union. We have assembled a few key resources that provide information and guidance when modifying loans, making concessions, or granting forbearance agreements.

NCUA’s March 22, 2020 Press Release provides assurance that the agency will not criticize institutions for working with borrowers, as long as it’s done in a safe and sound manner.

The Interagency Statement on Loan Modifications details its understanding of the challenges Credit Unions are facing and clarifies the accounting and reporting of affected loans.

CUNA’s March 16, 2020 compliance update regarding NCUA’s letter 20-CU-02 succinctly presents practical ways credit unions can work with their borrowers.

While Lillie & Company does not endorse specific vendors, an excellent article on Forbearance Agreements was published by Weltman, Weinberg, & Reis Co., LPA. This article explains what a forbearance agreement is and introduces best practices when granting them.

Lillie & Company published this helpful chart earlier this month. It does not address the current climate, but it is a good document for future reference.

If you have any questions, feel free to contact us at stevelillie@lilliecpa.com or mikejones@lilliecpa.com. If you need a PDF of these resources, click here.

Stay Healthy!