Your policies and procedures should consider and address the following applicable risks: You should document your initial assessment of each property along with the ongoing analysis of subsequent decisions. In addition to establishing an overall policy regarding FRA, you should also analyze each property on an inpidual basis. These factors must be considered when determining your strategy for managing FRA. Holding these non-earning assets will cause a decline in profitability due to loss of income from the cost of carrying the asset. When determining the appropriate program and time-frame for holding FRA, you should perform a risk assessment and develop policies and procedures establishing overall limits and guidelines for the level of risk your credit union can sustain and still ensure continued safety and soundness. 1įRA should be actively marketed for sale as evidenced by the fact the credit union has committed to a plan of sale, is seeking a buyer, and expects to collect on the sale within 12 months. FRA should only be held temporarily and not permanently as an income-producing asset. However, when foreclosures are unavoidable, you must consider all risks associated with holding FRA. Prudent workout arrangements can be in the long-term best interest of both credit unions and members. We continue to urge you to work with your borrowers when possible. In Letter to Credit Unions 07-CU-06, Working with Residential Mortgage Borrowers, credit unions are encouraged to work constructively with residential mortgage borrowers who may be unable to meet their contractual payment obligations. Join today and take advantage of all the financial benefits available for our friends and neighbors here in the Midlands.The purpose of this letter is to provide guidance related to holding foreclosed properties as Foreclosed and Repossessed Assets (FRA).ĭue to the current financial market, credit unions hold an increasing number of foreclosed properties. Meaningful community engagement – Food drives, employee volunteer projects, and participation in charitable undertakings hosted throughout the year. Ethical business practices – Transparency and integrity in all of our professional dealings with members and business partners.Robust member benefits – Higher dividends on savings, lower interest rates for loans, fewer account-related fees, and more.Here’s a preview of the member service difference that you can expect to see from SAFE when you become a member: We’re a not-for-profit, so-unlike big-box corporate banks-we work to achieve the best possible financial outcomes for our members, not for anonymous groups of shareholders. Now, we’re a membership-based not-for-profit financial institution with more than $1.5 billion in assets, over 130,000 active account holders, and eighteen easily accessible branch locations dotted across the Midlands. We’ve come a long way since our early days in 1955-era Sumter County, where fifteen Shaw Air Force Base civilian employees gathered together what cash they had to start a credit union. In fact, that’s our mission-to help members live their financial best through all stages of life-and has been since our founding over half a century ago. Helping Members live their Financial BestĪt SAFE Federal Credit Union, we connect South Carolinians in our seven-county service area with the resources they need to achieve lasting economic stability.
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