ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release September 21, 2005 #05-67
E-mail: [email protected]

ACB URGES CAUTION IN EVALUATING PAST DUE LOAN DATA RELATED TO REPORTING CHANGE FOR FHA, VA LOANS

Press Release Tools
	E-mail This Press Release
	Printer-Friendly Format

WASHINGTON, D.C. — America’s Community Bankers has cautioned users of the Office of Thrift Supervision’s Thrift Financial Report data that a change in reporting of collateral for Ginnie Mae securities will cause misleading past due loan totals for some institutions.

“Institutions that are large servicers of GNMA securities may report a significant increase in past due loans,” said Dennis Hild, ACB’s vice president for accounting and financial management policy. “The increase in reported delinquent loans as a result of this reporting change does not suggest that a financial institution’s risk profile has eroded.”

The change, effective with the Sept. 30, 2005, TFR, will require the reporting of all delinquent loans insured by the Federal Housing Administration and the Veterans Administration on Schedule PD, even though the unpaid principal balances of all Ginnie Mae loans are insured and guaranteed by agencies of the U.S. government.

As a more accurate measure of an institution’s risk profile, regulators, rating agencies, customers and other interested parties are urged to subtract the Ginnie Mae loans and government-guaranteed or -insured loans included in the Schedule PD memorandum line from total delinquencies reported in the main body of Schedule PD, Hild said.

The guidance is attached.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

-30-