Federal Financial Institutions Examination Council Issues Statement on Additional Loan Accommodations Related to COVID-19

August 2020
Federal Financial Institutions Examination Council Issues Statement on Additional Loan Accommodations Related to COVID-19

(Aug. 3, 2020) – The Federal Financial Institutions Examination Council on behalf of its members today issued a statement setting forth prudent risk management and consumer protection principles for financial institutions to consider while working with borrowers as initial coronavirus-related loan accommodation periods come to an end and they consider additional accommodations.

The COVID event has had a significant adverse impact on consumers, businesses, financial institutions, and the economy. To address some of these impacts, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides several forms of relief to business and individual borrowers, and some states and localities have taken action to provide similar credit accommodations. Also, many financial institutions have voluntarily offered other credit accommodations to their borrowers.

As initial loan accommodation periods come to an end, some borrowers may be able to resume contractual payments, and others may be unable to meet their obligations due to continuing financial challenges. The agencies encourage financial institutions to consider, when appropriate, prudent options for additional accommodations that can ease cash flow pressures on affected borrowers, improve their capacity to service debt, and facilitate the financial institution’s prudent management of its loans, consistent with applicable laws and regulations.

Attachment

Agency Contact Phone
CFPB Marisol Garibay 202.384.8538
FDIC Julianne Breitbeil 202.898.6895
Federal Reserve Darren Gersh 202.452.2955
NCUA Ben Hardaway 703.518.6333
OCC Stephanie Collins 202.649.6870
SLC Catherine Pickels 202.728.5734
COVID-19 TDRs
Last modified on
08/27/20