If a credit union has repossessed collateral that has been written down to fair value (less cost to sell), is it reported as delinquent on the call report?
• No. The repossessed collateral should be written down to fair value (less cost to sell) at the time of repossession. If the credit union intends to sell the repossessed collateral, it should be moved out of loans and into “Foreclosed and Repossessed Assets”. There should be no delinquency balance remaining on the books when moved because of the write down.
Related Questions
- How does a credit union with a member business loan that has real estate as the collateral, report it on the delinquent loan schedule? Is there double counting?
- If a credit union has repossessed collateral that has been written down to fair value (less cost to sell), is it reported as delinquent on the call report?
- Why would the heirs to an Estate sell a Property below fair market value?
