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Joint Press Release March 22, 2020 Agencies provide additional information to encourage financial institutions to work with borrowers affected by COVID-19 Board of Governors of the Federal Reserve System Conference of State Bank Supervisors Consumer Financial Protection Bureau Federal Deposit Insurance Corporation National Credit Union Administration Office of the Comptroller of the Currency For release at 6:00 p.m. EDT Share The federal financial institution regulatory agencies and the state banking regulators issued an interagency statement encouraging financial institutions to work constructively with borrowers affected by COVID-19 and providing additional information regarding loan modifications. The agencies encourage financial institutions to work with borrowers, will not criticize institutions for doing so in a safe and sound manner, and will not direct supervised institutions to automatically categorize loan modifications as troubled debt restructurings (TDRs). The joint statement also provides supervisory views on past-due and nonaccrual regulatory reporting of loan modification programs. The agencies view prudent loan modification programs offered to financial institution customers affected by COVID-19 as positive and proactive actions that can manage or mitigate adverse impacts on borrowers, and lead to improved loan performance and reduced credit risk. The statement reminds institutions that not all modifications of loan terms result in a TDR. Short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs. This includes short-term—for example, six months—modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. The agencies' examiners will exercise judgment in reviewing loan modifications, including TDRs, and will not automatically adversely risk rate credits that are affected, including those considered TDRs. Regardless of whether modifications are considered TDRs or are adversely classified, agency examiners will not criticize prudent efforts to modify terms on existing loans for affected customers. Interagency Statement (PDF) SR letter 20-4 / CA letter 20-3, "Supervisory Practices Regarding Financial Institutions Affected by Coronavirus" Media Contacts: Federal Reserve Board CFPB CSBS FDIC NCUA OCC Eric Kollig Marisol Garibay Jim Kurtzke David Barr Ben Hardaway Stephanie Collins 202-452-2955 202-435-7170 202-728-5733 202-898-6992 703-518-6333 202-649-6870 Related Information Agencies issue revised interagency statement on loan modifications by financial institutions working with customers affected by the coronavirus (April 7, 2020) Last Update: March 23, 2020