Audit Link and Lender*VP, divisions of the CU*Answers CUSO, held a joint conference for CU*Answers clients/owners to address the new NCUA Rule 741.2 Loan Workouts and Nonaccrual Policy. The conference was held in Grand Rapids at the credit union-owned CUSO’s corporate headquarters and was attended by 30 Loss Mitigation Specialists from around the Midwest. The goal of the session was to explain the nuances of the regulation and develop a best practice guide on how the CU*BASE^® GOLD core software can be utilized to manage the requirements as outlined in the regulation.

Jim Vilker, VP of Professional Services and Manager of the Audit Link Division stated, “Not only did we review the regulation but also highlighted the changes that must take place in policy.”  He went on to say, “The consensus of the group was that the documentation of collection activity must change related to the decision to stop the accrual of interest. It should include the language as found in the regulation itself. It will be very interesting to see how the examiners review the adherence with this new regulation and to see how they evaluate the arguments to not stop the accrual.”