The NCUA joined several other banking agencies and released a Policy Statement on Prudent Commercial Real Estate Loan Accommodations and Workouts. According to the NCUA, the statement is a “principles-based resource for credit unions when engaging with commercial real estate borrowers experiencing financial difficulties”. The statement replaces one from 2009 adopted by the banking agencies. The NCUA recognized that accommodations and workouts are often in the best interest of the credit union and the borrower. The statement addresses sound principles and supervisory expectations with such accommodations or workouts to include risk management, classification of loans, regulatory reporting, and accounting considerations.
