NCUA Chairman Rodney Hood issued a letter of guidance to credit unions on Thursday, serving as a follow up from the NCUA to the interagency statement issued jointly with other regulators on April 7.
This letter details some general actions NCUA is urging credit unions to take in responding to the needs of borrowers during this time, including:
- temporary loan modifications;
- permanent loan modifications;
- methods to ensure new funds are available to borrowers; and
- monitoring and reporting loan modifications.
“The financial hardships experienced by borrowers during the COVID 19 pandemic will vary,” Hood stated in the letter. “When evaluating available strategies to work with borrowers, credit unions should use a strategy appropriate for a borrower’s needs and the degree of hardship… a credit union’s strategies for working with borrowers should also take into account the financial effects these actions will have on the credit union and its ability to serve all members.”
The full letter from Hood can be accessed on NCUA’s website.