Search: "credit risk"

Qualified Mortgages, More Than Just a Compliance Issue…

As of January 10, 2014, the “Ability to Repay and Qualified Mortgage Standards under the Truth in Lending Act (Regulation Z)” went into effect. Beyond the added compliance burden this will have, consider how this rule could impact strategy, interest rate risk and earnings at individual credit unions, and for the financial services industry as […]

NCUA – Updated Standards of Investment Creditworthiness (Investment Grade)

One of the many results of the Dodd-Frank Act is that government agencies, including NCUA, remove references to Nationally Recognized Statistical Rating Organizations (NRSRO) that are contained within regulation. NCUA published the final rule pursuant to this order in December 2012, and the final rule became effective June 11, 2013. While the final rule does […]

NCUA’s Interest Rate Risk Questionnaire – Starting the Conversation

More institutions are being presented with NCUA’s Interest Rate Risk Questionnaire in advance of examinations and being asked to fill them out. During the preparation for an examination, this may seem like the last thing a busy management team should be concerned with, but it should be taken as an opportunity to refresh credit union […]

Interest Rate Risk Modeling—Do The Results Make Sense?

Many credit unions are increasing the number of “What-Ifs” they run. It is important that decision-makers do a gut check on the results being presented.  It is also important to understand that various modeling methodologies may need to be used to ensure appropriate evaluation of the decision. Take, for instance, a decision to expand auto lending […]

Strategic Plans And Quantifying Risk

In the recently issued Interest Rate Risk Questionnaire, the NCUA devoted an entire section to evaluating if decision-making is informed by interest rate risk measurement systems.  The guidance specifically references interest rate risk “what-if” testing in conjunction with strategic plans and operational decisions—and that “what-if” analysis outcomes should be documented within the strategic plan to […]

Start typing and press Enter to search