Re: incentives to charge off

Posted by observer (64.12.96.205) on August 25, 2002 at 12:49:15:

In Reply to: Re: incentives to charge off posted by lucy on August 25, 2002 at 12:07:02:

Not cc collector but, I think I can answer. If you have a reasonable belief that the loan will start to become conforming you may delay a chargeoff for 30 days beyond the 180 day period

The 180 day period relly has little to do with tax writeoffs but, everything to do with giving regulators and shareholders a realistic picture of bad loans. You can thank all of the S&L's from the mid 80's for the FDIC cracking the whip on forcing a chargeoff at 180 days.

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