Banking Law News

Bank Regulators Update Guidance on Virus Relief for Consumers

April 7, 2020, 7:00 PM

Federal Reserve, Office of the Comptroller of the Currency, Federal Deposit Insurance Corp. and other other agencies provide additional information on loan modifications, while reiterating that they want banks to work “constructively with borrowers.”

  • CARES Act stimulus bill passed by Congress last month allows banks gives banks flexibility to avoid classifying certain loan modifications as troubled debt restructurings, regulators say in Tuesday statement
  • Regulators say they will not criticize banks for working with borrowers in a “safe and sound manner,” according to statement
  • Agencies say they will use judgment in examining loan modifications and won’t “automatically adversely risk-rate credits that are affected by COVID-19.”

To contact the reporter on this story:
Jesse Westbrook in Washington at jwestbrook1@bloomberg.net

To contact the editor responsible for this story:
Jesse Westbrook at jwestbrook1@bloomberg.net

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