After many years of “quiet times” in the commercial loan area, this year presents many challenges for Credit Unions as well as auditors entering the fourth quarter of 2020. In this year’s presentation we will address the 2020 current events and remind everyone the proper accounting for impaired loans. Finally, we will suggest some operational considerations given today’s environment. The following is a summary of the topics covered in this year’s presentation:
Regulatory findings in recent exams
COVID-19 modifications (“non-TDRs”)
Impairment accounting for non-homogeneous loans
Risk rating/ALLL methodology considerations
Internal loan reviews expectations
Learn of recent regulatory observations related to member business loans.
Revisit impairment accounting for large non-homogeneous loans.
Consider risk rating and ALLL implications of COVID-19 related impact to member business loan portfolios.