ICBA proposes needed changes to CRE guidance update

ICBA issued a comment letter expressing support for an agency effort to provide clearer guidance on prudent commercial real estate loan accommodations and workouts while suggesting improvements to the proposal.

Agency Proposal: The FDIC and OCC proposal would update a 2009 interagency policy statement on working with creditworthy borrowers during times of financial stress. It would incorporate:

  • Recent policy guidance on short-term loan accommodations.

  • Revisions to reflect accounting developments for estimating loan losses.

  • Revised and additional examples of CRE loan workouts and accommodations.

ICBA Comments: In addition to supporting updates that will promote clear guidance to community banks while memorializing current practices, ICBA suggested:

  • Clarifying regulatory expectations on updating financial and collateral information for distressed borrowers.

  • Clarifying that “market conditions” should be primarily informed by trends within local markets.

  • Requiring examiners to supply empirical data if a bank and its experts disagree with regulators about adjustments to collateral valuation.

Fed Update: The Federal Reserve Board last week invited comment on identical updates to its guidance, with a 60-day comment period.

Previous News

  • Grassroots key amid interchange amendment push

    With lawmakers working to include ICBA-opposed credit card legislation in a must-pass defense bill, ICBA is urging community bankers to continue the grassroots campaign against the interchange measure.

    Image

    Oct 7, 2022

  • Financial Services Trades to Congress: NDAA Shouldn’t Be a Payday for Retailers

    Ten leading financial services trade associations sent a letter to U.S. House and Senate leadership and the top members of the Senate and House Armed Services Committees warning them that attaching the so-called Credit Card Credit Card Competition Act of 2022 to the National Defense Authorization Act (NDAA) “will rob military families of their credit card rewards, reduce the availability of safe credit, and undermine the nation’s data security.”

    Image Alternate Text

    Oct 6, 2022

  • ICBA Offers Tips to Help Consumers Protect Financial Data During Cybersecurity Awareness Month

    In recognition of Cybersecurity Awareness Month, The Independent Community Bankers of America (ICBA) and the nation’s community banks are reminding consumers of practical steps to help safeguard their sensitive data and mitigate losses in the event of a data breach or compromise.

    Image

    Oct 5, 2022


Related News Taxonomy