SR 23-5: Prudent Commercial Real Estate Loan Accommodations and Workouts

The Federal Reserve issued Supervision and Regulation Letter SR 23-5 to update interagency guidance on prudent commercial real estate loan accommodations and workouts for all supervised institutions. This policy statement reinforces the expectation that financial institutions work constructively with creditworthy borrowers facing financial difficulties across all economic cycles to ensure supervisory consistency. The document supersedes previous 2009 guidance and provides updated principles, accounting clarifications, and examples for modifying loans to borrowers unable to meet current contractual obligations.

US Federal

Federal Reserve Board