WASHINGTON–Rep. Bill Posey (R-FL) has introduced a bill in Congress that would prevent regulators from assigning performing loans non-accrual status, which, as NAFCU has noted, could impede a credit union’s ability to lend and accelerate a foreclosure process.
Posey introduced legislation with the same text in the previous Congress.
H.R. 3109 is aimed in particular at aiding community-based financial institutions, such as credit unions, and consumers as the housing market continues to recover from the financial crisis, NAFCU said, adding that the “measure would ensure regulators treat any loan as a performing loan provided it is current, no more than 30 days delinquent in the last six months, an amortizing loan, and not funded through an interest reserve account.”
NAFCU said it will continue to monitor the bill’s progress for its potential impact on credit unions.