Federal Agencies Release Joint Policy Statement on CRE Accommodations

To address ongoing commercial real-estate (CRE) concerns, the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency, and the National Credit Union Administration released a joint policy statement on CRE loan accommodations. The regulators encourage banks to address distressed CRE loans to prevent default or the initiation of a workout process, which may involve renewing or extending loan terms or extending and restructuring credit. However, the agencies acknowledge that short-term modifications, such as the suspension, extension, or deferral of repayment terms, can effectively address issues before more substantial accommodations become necessary. Read More