Financial Institution Letters
April 7, 2020
Revised Interagency Statement on Loan Modifications by Financial Institutions Working with Customers Affected by the Coronavirus
The FDIC, the Board of Governors of the Federal Reserve, the Office of the Comptroller of the Currency, the National Credit Union Administration, the Consumer Financial Protection Bureau, in consultation with state financial regulators, issued a revision to the Interagency Statement on Loan Modifications by Financial Institutions Working with Customers Affected by the Coronavirus issued on March 22, 2020. The revised interagency statement encourages financial institutions to work constructively with borrowers impacted by the Coronavirus Disease 2019 (referred to as COVID-19), provides additional information regarding loan modifications, and clarifies the interaction between the interagency statement and related relief provided by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
Statement of Applicability to Institutions with Total Assets under $1 Billion: This Financial Institution Letter (FIL) applies to all FDIC-supervised institutions.
As described in the revised interagency statement, the FDIC:
- Encourages financial institutions to work constructively with borrowers affected by COVID-19;
- Will not criticize institutions for prudent loan modifications; and
- Views prudent loan modification programs to financial institution customers affected by COVID-19 as positive actions that can effectively manage or mitigate adverse impacts on borrowers due to COVID-19, and lead to improved loan performance and reduced credit risk.
The revised interagency statement also:
- Clarifies the interaction between the interagency statement and the optional temporary relief provided in Section 4013 of the CARES Act;
- Provides supervisory views on past due and nonaccrual reporting of loan modification programs; and
- Provides supervisory views on consumer protection considerations.
FIL 22-2020, dated March 22, 2020, has been moved to inactive status.
- FDIC-Supervised Institutions
- Chief Executive Officer
- Chief Financial Officer
- Chief Credit Officer
- Board of Directors
- Frequently Asked Questions for Financial Institutions Affected by the Coronavirus Disease 2019 (Referred to as COVID-19)
- FIL-50-2013, Interagency Supervisory Guidance Addressing Certain Issues Related to Troubled Debt Restructurings
- Interagency Statement on Loan Modifications by Financial Institutions Working with Customers Affected by the Coronavirus (Revised)
- John Rieger, Chief Accountant, 202-898-3602 or email@example.com
- Shannon Beattie, Deputy Chief Accountant, 202-898-3952 or firstname.lastname@example.org
- Bryan Jonasson, Senior Examination Specialist, 781-794-5641 or email@example.com
Paper copies may be obtained via the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (877-275-3342 or 703-562-2200).