Bank regulators recognized and addressed the current business disruptions and challenges that affect banks, credit unions, businesses, borrowers, and the economy on March 22, 2020, when they issued the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus.
The agencies encouraged institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations because of the effects of COVID-19. Given the unique challenges facing institutions, the agencies view loan modification programs as positive actions that can mitigate adverse effects on borrowers due to COVID-19. These proactive actions are in the best interest of institutions and their borrowers and the economy. Summarized below are the key takeaways from the interagency statement:
