Agencies finalize policy statement on commercial real estate loan accommodations and workouts
ALEXANDRIA, VA (June 29, 2023) — Federal financial institution regulatory agencies today jointly issued a final policy statement on commercial real estate loan accommodations and workouts. The updates reinforce and build on existing supervisory guidance calling for financial institutions to work prudently and constructively with creditworthy borrowers during times of financial stress.
The statement is substantially similar to a proposal issued last year and includes minor changes in response to comments. The statement updates and supersedes the previous guidance on commercial real estate loan workouts issued in 2009.
The statement includes a section on short-term loan accommodations that was not included in the previous guidance. An accommodation includes an agreement to defer one or more payments, make a partial payment, or provide other assistance or relief to a borrower who is experiencing a financial challenge. Additionally, the statement addresses recent accounting changes for estimating loan losses and provides examples of how to classify and account for loans affected by workout activity.
The statement applies to all financial institutions supervised by the agencies.
Attachment: Policy Statement on Prudent Commercial Real Estate Loan Accommodations and Workouts(opens new window)
| Agency |
Contact |
Phone |
| FDIC |
LaJuan Williams-Young |
202.898.3876 |
| Federal Reserve |
Eric Kollig |
202.452.2955 |
| NCUA |
Joseph Adamoli |
703.518.6572 |
| OCC |
Stephanie Collins |
202.649.6870 |
About National Credit Union Administration (NCUA)
The NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States, the NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 135 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. The NCUA also protects consumers and educates the public on consumer protection and financial literacy issues.
