Ask Reggi Your Question Now
Can you summarize Chapter 208-476 WAAC?
Financial Institutions, Department of (See also Titles 50, 419, and 460) > Credit unionOther real estate owned.
Short Summary
These legal documents govern the handling of ‘other real estate owned’ (OREO) by credit unions. OREO refers to property that is legally owned by the credit union as a result of foreclosure or acquired due to default on a loan collateralized by real property. The purpose of these rules is to ensure safe and sound management of OREO by credit unions. The Department of Financial Institutions (DFI), Division of Credit Unions, has the authority to regulate credit unions and protect their integrity. The rules require credit unions to comply with generally accepted accounting principles (GAAP) when accounting for OREO. The DCU (division of credit unions) has the authority to require credit unions to charge off or set a special reserve for OREO property. Credit unions are permitted to acquire, hold, and dispose of OREO based on their statutory power to make secured and unsecured loans to their members. The rules specify the minimal standards for safe and sound management of OREO, including accurate accounting, independent appraisals, diligent marketing efforts, and compliance with regulatory directives. Credit unions with OREO holdings are required to have a board-approved policy for managing OREO, which includes regular reporting to the board. The rules also govern the limitations on the holding of OREO by credit unions, stating that OREO must be disposed of as soon as prudent business judgment dictates, and in no case longer than five years, unless there are special circumstances and discretionary approval by the director. The director of DFI has the authority to require credit unions to file special reports on OREO properties. Overall, these documents provide regulatory standards and guidelines for credit unions in the management of OREO.
Whom does it apply to?
Credit unions
What does it govern?
Handling of 'other real estate owned' (OREO) by credit unions
What are exemptions?
No specific exemptions are mentioned in this document.
What are the Penalties?
No specific penalties are mentioned in this document.
Jurisdiction
Washington