The Office of the Comptroller of the Currency, FDIC and National Credit Union Administration are seeking public comment on an updated policy statement regarding accommodations and workouts for commercial real estate loans whose borrowers are experiencing financial difficulty. The policy statement was first adopted in 2009.
The updated statement would include the following changes: a new section on short-term loan accommodations, information about changes in accounting principles since 2009, and revisions and additions to examples of CRE loan workouts. The statement also emphasizes the importance of working constructively with borrowers facing financial difficulties, and discusses supervisory expectations regarding CRE loan accommodations and workouts.
Comments on the proposal are due 60 days after publication in the Federal Register. Among other things, the agencies are seeking input on how the document reflects sound practices in CRE loan accommodation and what additional information it can include to optimize the guidance for managing CRE loan portfolios.
