See the enclosure – Policy Statement on Prudent Commercial Real Estate Loan Accommodations and Workouts. The NCUA and other federal banking regulators issued this policy statement on accommodations and workouts for commercial real estate (CRE) loans where borrowers are experiencing financial difficulty. Among other things, the statement – which supersedes a 2009 statement – recognizes the recent elimination of accounting for troubled debt restructurings.
The statement also builds on existing supervisory guidance calling for financial institutions to work prudently and constructively with borrowers during times of financial stress, updates interagency supervisor guidance on CRE loan workouts and adds a section on short-term loan accommodations.