Fed Agencies Issue Policy on Commercial RE Loans


After a comment period, the agencies finalized a policy on how to handle commercial loan accommodations and workouts for financially troubled firms.

WASHINGTON – Four federal financial regulatory agencies – Office of the Comptroller of the Currency, Federal Reserve System, Federal Deposit Insurance Corporation and the National Credit Union Administration – jointly issued a final policy statement on commercial real estate loan accommodations and workouts.

The updates build on existing 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 received. It updates and supersedes previous guidance on commercial real estate loan workouts issued in 2009.

One addition is a new section on short-term loan accommodations. An accommodation includes an agreement to defer one or more payments, make a partial payment, or provide other assistance or relief to a borrower experiencing a financial challenge.

The statement applies to all financial institutions supervised by the agencies, and the final version – Policy Statement on Prudent Commercial Real Estate Loan Accommodations and Workouts – is posted online.

© 2023 Florida Realtors®

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