Credit Administration: Final Interagency Policy Statement on Prudent Commercial Real Estate Loan Accommodations and Workouts
June 29, 2023 / Source: OCC
The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the National Credit Union Administration (collectively, the agencies), in consultation with state bank and credit union regulators, today published the final “Policy Statement on Prudent Commercial Real Estate Loan Accommodations and Workouts.”
This bulletin rescinds OCC Bulletin 2009-32, “Commercial Real Estate (CRE) Loans: Guidance on Prudent CRE Loan Workouts,” issued October 30, 2009. The final interagency policy statement replaces the policy statement conveyed by OCC Bulletin 2009-32. Also rescinded with the issuance of today’s bulletin is OCC Bulletin 2022-19, “Credit Administration: Notice and Request for Comment on Proposed Interagency Policy Statement on Prudent Commercial Real Estate Loan Accommodations and Workouts.”
Note for Community Banks
The interagency policy statement applies to community banks.
The final interagency policy statement
- builds on existing guidance calling for banks to work prudently and constructively with creditworthy borrowers during times of financial stress.
- updates existing interagency guidance on CRE loan workouts.
- includes new information on short-term loan accommodations.
- addresses relevant accounting changes on estimating loan losses.
- provides updated examples of how to classify and account for loans modified or affected by loan accommodations or loan workout activity.
Please contact David Bates, Director for Commercial Credit Risk Policy, at (202) 649-6670.
Grovetta N. Gardineer
Senior Deputy Comptroller for Bank Supervision Policy