Monday, June 24, 2013

Loan Servicing Issues

NCUA Region V examiners are uncovering loan servicing issues at credit unions.

According to the June 2013 NCUA Report, "examiners have noted problems with interest accrual calculation, how late fees are applied and how payments are applied. Misapplication of payments may violate contracts with not only the borrower,
but with third-parties, such as the secondary mortgage market, or participants in a commercial loan."

NCUA recommended that "credit unions review their own systems to ensure that all of their loan servicing practices and procedures are correct and proper."

Read the NCUA Report (story can be found on pages 6 and 7).
Posted by at
Labels: , ,

1 comment:

  1. AnonymousJune 24, 2013 at 9:14 PM

    All pretty basic stuff. If this is a problem, then it's probably been one for a long time, since nothing has changed. Wonder why NCUA is just catching it? Maybe someone finally explained to them how payments are processed.

    ReplyDelete

Subscribe to: Post Comments (Atom)
 

The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.