In the June 30, 2021 issue of the Federal Register (86 FR 34611), the National Credit Union Administration (NCUA) published a final rule amending 12 CFR Appendix B to Part 741 to remove the prohibition on the capitalization of interest in connection with loan workouts and modifications. The final rule also establishes documentation requirements to help ensure that the addition of unpaid interest to the principal balance of a mortgage loan does not hinder the borrower’s ability to become current on the loan. The final rule is effective July 30, 2021, and the hyperlink address for the above Federal Register is: https://www.govinfo.gov/app/details/FR-2021-06-30/context.
Full Memorandum
