The Federal Reserve Board on Tuesday announced that it has invited comment on updates to its existing guidance on commercial real estate loan accommodations for borrowers. The proposal from the Board is identical to a proposal issued by the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration last month.
The proposal updates 2009 interagency guidance on commercial real estate loan workouts-agreements between lenders and delinquent borrowers to put borrowers' loan payments back on track. It also adds a new section to the guidance on short-term loan accommodations. Additionally, the proposal addresses recent accounting changes for estimating loan losses and provides updated examples of how to classify and account for loans subject to loan accommodations or loan change activity.
The proposal would apply to all financial institutions supervised by the Board. Comments will be accepted for 60 days after publication in the Federal Register.
