FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL
On June 30, 1980, the FRB, FDIC, and OCC adopted the Uniform Policy for Classification of Consumer Installment Credit Based on Delinquency Status (1980 policy). The Federal Home Loan Bank Board, the predecessor of the OTS,adopted the 1980 policy in 1987. The 1980 policy established uniform guidelines for the classification of retail installment credit based on delinquency status and provided charge-off time frames for open-end and closed-end credit. The Agencies undertook a review of the 1980 policy as part of their review of all written policies mandated by Section 303(a)of the Riegle Community Development and Regulatory Improvement Act of 1994. As a result of this review, on February 10, 1999 (64 FR 6655), the Agencies issued the Uniform Retail Credit Classification and Account Management Policy (Uniform Policy).
In general, the Uniform Policy:
· Established a charge-off policy for open-end credit at 180 days delinquency and closed-end credit at 120 days delinquency.
· Provided guidance for loans affected by bankruptcy, fraud, and death.
· Established guidelines for re-aging, extending, deferring, or rewriting past due accounts.
· Provided for classification of certain delinquent residential mortgage and home equity loans.
· Provided an alternative method of recognizing partial payments.
Federal Register /Vol. 65, No. 113 /Monday, June 12, 2000 /Notices.