Is there a regulatory site that spells out the requirements of when a loan should be put on non-accrual status? My bank is regulated by FDIC. I have read the Uniform Retail Credit Classification Rules for which defines times frames for loss and charge off, but need better guidelines for non-accural status.

Thanks, Kim

The call report instructions tell when a loan must be reported as non-accruing. Basically, anything that is 90 days past due must be put on non-accrual unless it is well-secured and in the process of collection. I have been told by examiners that "in the process of collection" means that litigation is in process.

Hope this helps!

Well secured usually means a LTV of 60% or less. We set our core processing system to automatically put a loan on non-accrual when it goes 90 days past due. In my 20+yrs of banking, when a loan goes non-accrual, more times than not, the bank will not fully recover principal and interest.