Following other agencies, Fed proposes to update statement on CRE loan accommodations

The Federal Reserve is seeking public comment on an updated policy statement regarding accommodations and workouts for commercial real estate loan borrowers who are experiencing financial difficulty. The policy statement was first adopted in 2009. The Fed’s request is identical to one previously issued by the OCC, FDIC and National Credit Union Administration last month.

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