Agencies seeking feedback on commercial real estate loan accommodations, workouts

Three agencies are seeking public comment regarding a proposed policy statement for prudent commercial real estate (CRE) loan accommodations and workouts.© Shutterstock The National Credit Union Administration (NCUA), the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency are working with state bank and credit union regulators to garner public engagement. […]

The post Agencies seeking feedback on commercial real estate loan accommodations, workouts appeared first on Financial Regulation News.

Three agencies are seeking public comment regarding a proposed policy statement for prudent commercial real estate (CRE) loan accommodations and workouts.

© Shutterstock

The National Credit Union Administration (NCUA), the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency are working with state bank and credit union regulators to garner public engagement.

“The proposed policy statement will assist credit unions with managing risks associated with multi-family housing and other commercial real estate,” NCUA Chairman Todd M. Harper said. “It also provides credit unions with guidance on working constructively with CRE borrowers who are experiencing financial difficulty. I encourage credit union stakeholders to review and provide comments on the proposed policy statement.”

The proposed statement addresses how financial institutions handle loan accommodations and workouts with regard to risk management, classification of loans, regulatory reporting, and accounting considerations. Additionally, there are updated references to supervisory guidance and loan workout examples.

The proposed statement also reflects changes in domestically generally accepted accounting principles occurring since 2009, eliminating the need for credit unions to identify and account for loan modifications as troubled debt restructurings after adopting the current expected credit losses accounting methodology.

The post Agencies seeking feedback on commercial real estate loan accommodations, workouts appeared first on Financial Regulation News.

Read more / Original news source: https://financialregnews.com/agencies-seeking-feedback-on-commercial-real-estate-loan-accommodations-workouts/