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CU*Answers Responds to NCUA Call Reporting Changes

Tony Muka
In:

CU*Answers, the 100% credit union-owned CUSO, is re-assuring clients that the upcoming 5300 Call Report changes recently disclosed by the NCUA will not have a large impact on our software tool.  Jim Vilker, VP of Professional Services and Manager of the Audit Link department stated “there are numerous changes – yes, but sweeping changes – no.  Since the CU*BASE® 5300 software tool was introduced over three years ago CU*Answers has a dedicated resource on staff who monitors the NCUA changes and updates the software, procedures and documentation accordingly.  In fact, our Call Report tool was designed nimble to the point where programming is not necessary to effectuate the changes each time Account Codes are added”.

Here is a highlight of the changes:

  • For the December 2012 Call Report, the Account Codes for Modified Loans in the Specialized Lending section will be eliminated and replaced with Troubled Debt Restructured Loans.
  • For the March 2013 Call Report, Account Codes will be added for reporting delinquency and charge offs based on additional NCUA loan categories.  Account Codes will also be added for unfunded commitments, credit impaired loans and investments.
  • For the June 2013 Call Report, the reporting requirement for loan delinquencies is changing from months to days.

According to Vilker, “The NCUA letter to credit unions may give the impression that the new delinquency reporting requirements are a very large change that will require major revamps to data processing systems.  In some cases that may be so, but not on the CU*BASE core platform. Credit unions have had the ability to pull delinquency reports in the proposed daily format for over a decade.  The larger issue is the questions relating to reportable delinquency verses reporting to the Board of Directors and collection processing.  The NCUA letter only addresses the reporting on the Call Report and states the reasoning behind the change is consistency between all regulatory agencies.  Based upon what is currently known of the required changes nothing else in credit union operations need to change”.