Policy Issues

Real Estate Coalition Requests Additional Guidance Under Interagency Statements on Troubled Debt Restructurings

November 10, 2020


A coalition of national real estate organizations, including The Real Estate Roundtable, on November 10, 2020 urged federal banking regulatory agencies to provide guidance that COVID-19-related loan modifications with terms totaling more than six months (e.g.,up to 18 months) do not automatically result in troubled debt restructurings (TDR) 
under the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised) and Joint Statement on Additional Loan Accommodates Related to COVID-19 (Interagency Statements).   

The coalition letter also urged the Agencies to reinforce that financial institutions may use their reasonable judgment when assessing credit risk during the unique circumstances of the pandemic.

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