NCUA - OIG-19-06 - OIG-19-06

3. Include an update to the annual examination scope requirements that examiners review credit unions’ lending procedures with respect to analyzing the ability of the borrower to meet debt service requirements. Ensure examiners address through the enforcement process any credit unions not sufficiently considering the borrower’s ability to repay the loan due to undue reliance on the value of the collateral. If left unresolved, ensure the quality control procedures review the need for elevated enforcement action.