FFIEC Issues Joint Statement on Additional Loan Accommodations Related to COVID-19

The Federal Financial Institutions Examination Council issued a joint statement on additional loan accommodations related to COVID-19 on Monday.

FFIEC members include federal prudential regulators, the CFPB and a representative of state prudential regulators.

The joint statement is intended to address the situation of loans that are near the end of their initial accommodation periods, consistent with the Interagency Statement issued on April 7.

The FFIEC joint statement is an effort to provide lenders with a framework for assessing how to proceed when a borrower is not back to normal at the end of the accommodation period, balancing principles of safety and soundness with the reality that lenders will be working from incomplete and uncertain information. The joint statement also addresses associated accounting and regulatory reporting requirements.

•             Why it matters. Lenders are or will be considering how to proceed in cases where accommodations are ending, and supervisory agencies will be considering how they will assess and respond to those lending decisions.

•             What’s next. The FFIEC joint statement will inform lenders and their supervisory agencies, and the NAIC and other policymakers also may look to the joint statement as a resource.

Please contact Bruce Oliver with any questions about the FFIEC issuance.