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Financial Services Law Insights and Observations

NCUA issues additional guidance on working with borrowers impacted by Covid-19

Federal Issues Covid-19 NCUA Credit Union Bank Compliance

Federal Issues

On April 30, the National Credit Union Administration issued guidance describing strategies for working with negatively impacted borrowers while taking measures to limit the negative financial impact of those strategies on the credit union and its ability to serve all members. The guidance describes strategies for providing new funds to borrowers, temporary loan modifications, and permanent loan modifications. It also states that credit unions should maintain policies to manage the risks of workout strategies, including clearly defined eligibility criteria, aggregate program limits, and controls to ensure workout actions are structured appropriately.