September 20, 2023 - Recent federal regulatory directives are likely to impact loan workouts. We explain more below.
For lenders, this situation signifies the urgent need to exercise agility, ensuring that their strategies are attuned to the market's changing rhythms. Flexibility in renegotiating terms, extending maturity dates, or even reducing principal amounts might become more common as they attempt to strike a balance between recovering funds and supporting borrower customers during these tumultuous times.
Impact of updated banking policy Navigating the intricate path of managing loan workouts is heavily influenced by federal policy. On June 29, 2023, the four major federal banking regulators jointly released a final policy statement concerning prudent CRE loan accommodations and workouts . More good news is that regulators have crafted a newly added section focusing on short-term loan accommodations for borrowers who are, or may in the near future be, unable to meet their contractual payment obligations during periods of financial stress, allowing far greater flexibility in addressing financial challenges before necessitating more intricate long-term solutions.
Those taking on the task of commercial real estate loan workouts should be sure to consider the below strategies:
Belgique Dernières Nouvelles, Belgique Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
La source: KitcoNewsNOW - 🏆 13. / 78 Lire la suite »