On June 29, 2023, the FDIC, Federal Reserve, NCUA, and OCC issued a final Policy Statement on commercial real estate loan accommodations and workouts. The purpose of the policy update is to expand upon existing guidance that calls for financial institutions to work “prudently and constructively with creditworthy borrowers during times of financial stress.” Additionally, it updates the current guidance on commercial real estate loan workouts and short-term loan accommodations.
ARCSys has been following and discussing the Commercial Real Estate price changes since September 2022. Over the past year, the overall commercial real estate price index has fallen approximately 15%.
This whitepaper will provide a brief overview of what you need to know about these updates. The full Policy Statement can be viewed here: Interagency Policy Statement on Prudent Commercial Real Estate Loan Accommodations and Workouts.
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