Advisory Committee: VA National Academic Affiliations Council, Notice of Meeting, 33287-33288 [2020-11697]
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Federal Register / Vol. 85, No. 105 / Monday, June 1, 2020 / Notices
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institution’s size, complexity, loan
types, risk profile, and risk management
practices and helps to verify whether
the review scope is appropriate. The
institution’s board of directors or
appropriate board committee typically
approves the scope of the credit risk
review on an annual basis or whenever
significant interim changes are made in
order to adequately assess the quality of
the current portfolio. An effective scope
of credit risk review is risk-based and
typically includes:
• Loans over a predetermined size;
• A sufficient sample of smaller
loans, new loans, and new loan
products;
• Loans with higher risk indicators,
such as low credit scores, high credit
lines, or those credits approved as
exceptions to policy;
• Segments of loan portfolios,
including retail, with similar risk
characteristics such as those related to
borrower risk (e.g. credit history),
transaction risk (e.g. product and/or
collateral type), or other risk factors as
appropriate;
• Segments of the loan portfolio
experiencing rapid growth;
• Exposures from non-lending
activities that also pose credit risk;
• Past due, nonaccrual, renewed, and
restructured loans;
• Loans previously adversely
classified and loans designated as
warranting the special attention of the
institution’s management; 13
• Loans to insiders or related parties;
• Loans to affiliates;
• Loans constituting concentrations
of credit risk and other loans affected by
common repayment factors.
Depth of Transaction or Portfolio
Reviews
Loans and portfolio segments selected
for review are typically evaluated for:
• Credit quality, soundness of
underwriting and risk identification,
borrower performance, and adequacy of
the sources of repayment;
Æ When applicable, this evaluation
includes the appropriateness of
automated underwriting and credit
scoring, including prudent use of
overrides, as well as the effectiveness of
account management strategies,
collections, and portfolio management
activities in managing credit risk;
• Reasonableness of assumptions;
• Creditworthiness of guarantors or
sponsors;
• Sufficiency of credit and collateral
documentation;
• Proper lien perfection;
• Proper approvals consistent with
internal policies;
13 See
footnote 8.
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• Adherence to loan agreement
covenants;
• Adequacy of, and compliance with,
internal policies and procedures (such
as those related to nonaccrual and
classification or risk rating policies),
laws, and regulations;
• The appropriateness of credit loss
estimation for those credits with
significant weaknesses including the
reasonableness of assumptions used,
and the timeliness of charge-offs;
• The accuracy of risk ratings and the
appropriateness and timeliness of the
identification of problem loans by loan
officers.
Review of Findings and Follow-Up
An important activity of an effective
credit risk review system is the
discussion of the review findings,
including all noted deficiencies,
identified weaknesses, and any existing
or planned corrective actions (including
time frames for correction) with
appropriate loan officers, department
managers, and senior management. An
effective system includes processes for
all noted deficiencies and weaknesses
that remain unresolved beyond the
scheduled time frames for correction to
be promptly reported to senior
management and the board of directors
or appropriate board committee.
It is important to resolve risk rating
differences between loan officers and
loan review personnel according to a
pre-arranged process. That process may
include formal appeals procedures and
arbitration by an independent party or
may require default to the assigned
classification or risk rating that
indicates lower credit quality. If credit
risk review personnel conclude that a
loan or loan portfolio is of a lower credit
quality than is perceived by the
portfolio management staff, the lower
classification or risk rating typically
prevails unless internal parties identify
additional information sufficient to
obtain the concurrence of the
independent reviewer or arbiter on the
higher credit quality classification or
risk rating.
Communication and Distribution of
Results
Personnel involved in the credit risk
review process typically prepare a list of
all loans (and portfolio segments)
reviewed, the date of review, and a
summary analysis that substantiates the
risk ratings assigned to the loans
reviewed. Effective communication also
typically involves providing results of
the credit risk reviews to the board of
directors or appropriate board
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33287
committee quarterly.14 Comprehensive
reporting includes comparative trends
that identify significant changes in the
overall quality of the loan portfolio, the
adequacy of, and adherence to, internal
policies and procedures, the quality of
underwriting and risk identification,
compliance with laws and regulations,
and management’s response to
substantive criticisms or
recommendations. Such comprehensive
reporting provides the board of directors
or appropriate board committee with
insight into the portfolio and the
responsiveness of management and
facilitates timely corrective action of
deficiencies.
Joseph M. Otting,
Comptroller of the Currency.
By order of the Board of Governors of the
Federal Reserve System.
Ann Misback,
Secretary of the Board.
Federal Deposit Insurance Corporation.
Dated at Washington, DC, on or about May
7, 2020.
Robert E. Feldman,
Executive Secretary.
By the National Credit Union
Administration Board.
Gerard Poliquin,
Secretary of the Board.
[FR Doc. 2020–10292 Filed 5–29–20; 8:45 am]
BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P;
7535–01–P
DEPARTMENT OF VETERANS
AFFAIRS
Advisory Committee: VA National
Academic Affiliations Council, Notice
of Meeting
The Department of Veterans Affairs
(VA) gives notice under the Federal
Advisory Committee Act that the VA
National Academic Affiliations Council
(NAAC) will meet via conference call on
July 15, 2020, from 1:00 p.m. to 3:00
p.m. EST. The meeting is open to the
public.
The purpose of the Council is to
advise the Secretary on matters affecting
partnerships between VA and its
academic affiliates.
On July 15, 2020, the Council will
receive updates about VA’s COVID–19
response; receive briefings from its
Subcommittees; receive an update about
14 An effective credit risk review system provides
for informing the board of directors or appropriate
board committee more frequently than quarterly
when material adverse trends are noted. When an
institution conducts loan file reviews less
frequently than quarterly, the board or appropriate
board committee will typically receive results on
other credit risk review activities quarterly.
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33288
Federal Register / Vol. 85, No. 105 / Monday, June 1, 2020 / Notices
jbell on DSKJLSW7X2PROD with NOTICES
VA’s Electronic Health Record
Modernization; receive briefings on the
implementation status of VA MISSION
Act educational sections; and discuss
other follow-up items. The Council will
receive public comments from 2:40 p.m.
to 2:50 p.m. EST.
Interested persons may attend and/or
present oral statements to the Council.
The dial in number to attend the
conference call is: 1–800–767–1750. At
the prompt, enter access code 12095
then press #. Individuals seeking to
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present oral statements are invited to
submit a 1–2 page summary of their
comments at the time of the meeting for
inclusion in the official meeting record.
Oral presentations will be limited to five
minutes or less, depending on the
number of participants. Interested
parties may also provide written
comments for review by the Council
prior to the meeting or at any time, by
email to Larissa.Emory@va.gov, or by
mail to Larissa A. Emory PMP, CBP, MS,
Designated Federal Officer, Office of
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Academic Affiliations (10X1), 810
Vermont Avenue NW, Washington, DC
20420. Any member of the public
wishing to participate or seeking
additional information should contact
Ms. Emory via email or by phone at
(915) 269–0465.
Dated: May 27, 2020.
Jelessa M. Burney,
Federal Advisory Committee Management
Officer.
[FR Doc. 2020–11697 Filed 5–29–20; 8:45 am]
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]]>Agencies
[Federal Register Volume 85, Number 105 (Monday, June 1, 2020)]
[Notices]
[Pages 33287-33288]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11697]
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DEPARTMENT OF VETERANS AFFAIRS
Advisory Committee: VA National Academic Affiliations Council,
Notice of Meeting
The Department of Veterans Affairs (VA) gives notice under the
Federal Advisory Committee Act that the VA National Academic
Affiliations Council (NAAC) will meet via conference call on July 15,
2020, from 1:00 p.m. to 3:00 p.m. EST. The meeting is open to the
public.
The purpose of the Council is to advise the Secretary on matters
affecting partnerships between VA and its academic affiliates.
On July 15, 2020, the Council will receive updates about VA's
COVID-19 response; receive briefings from its Subcommittees; receive an
update about
[[Page 33288]]
VA's Electronic Health Record Modernization; receive briefings on the
implementation status of VA MISSION Act educational sections; and
discuss other follow-up items. The Council will receive public comments
from 2:40 p.m. to 2:50 p.m. EST.
Interested persons may attend and/or present oral statements to the
Council. The dial in number to attend the conference call is: 1-800-
767-1750. At the prompt, enter access code 12095 then press #.
Individuals seeking to present oral statements are invited to submit a
1-2 page summary of their comments at the time of the meeting for
inclusion in the official meeting record. Oral presentations will be
limited to five minutes or less, depending on the number of
participants. Interested parties may also provide written comments for
review by the Council prior to the meeting or at any time, by email to
[email protected], or by mail to Larissa A. Emory PMP, CBP, MS,
Designated Federal Officer, Office of Academic Affiliations (10X1), 810
Vermont Avenue NW, Washington, DC 20420. Any member of the public
wishing to participate or seeking additional information should contact
Ms. Emory via email or by phone at (915) 269-0465.
Dated: May 27, 2020.
Jelessa M. Burney,
Federal Advisory Committee Management Officer.
[FR Doc. 2020-11697 Filed 5-29-20; 8:45 am]
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