Federal Register Extracts

Agency: "Office of the Comptroller of the Currency, Treasury; Federal Deposit Insurance Corporation; and National Credit Union Administration."

SUMMARY: The Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), and National Credit Union Administration (NCUA) (the agencies), in consultation with state bank and credit union regulators, are inviting comment on an updated policy statement for prudent commercial real estate loan accommodations and workouts, which would be relevant to all financial institutions supervised by the agencies. This updated policy statement would build on existing guidance on the need for financial institutions to work prudently and constructively with creditworthy borrowers during times of financial stress, update existing interagency guidance on commercial real estate loan workouts, and add a new section on short-term loan accommodations. The updated statement also would address relevant accounting changes on estimating loan losses and provide updated examples of how to classify and account for loans modified or affected by loan accommodations or loan workout activity.

DATES: Comments must be received by October 3, 2022.

ADDRESSES: Interested parties are encouraged to submit written comments to any or all of the agencies listed below. The agencies will share comments with each other. Comments should be directed to:

OCC: You may submit comments to the OCC by any of the methods set forth below. Commenters are encouraged to submit comments through the Federal eRulemaking Portal, if possible. Please use the title "Interagency Policy Statement on Prudent Commercial Real Estate Loan Workouts" to facilitate the organization and distribution of the comments. Federal eRulemaking Portal--"Regulations.gov": Go to www.regulations.gov. Enter "Docket ID OCC-2022-0017" in the Search Box and click "Search." Click on "Comment Now" to submit public comments. For help with submitting effective comments please click on "View Commenter's Checklist." Click on the "Help" tab on the Regulations.gov home page to get information on using Regulations.gov, including instructions for submitting public comments.

* Mail: Chief Counsel's Office, Attention: Comment Processing, Office of the Comptroller of the Currency, 400 7th Street SW, Suite 3E-218, Washington, DC 20219.

* Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218, Washington, DC 20219.

Instructions: You must include "OCC" as the agency name and "Docket ID OCC-2022-0017" in your comment.

In general, the OCC will enter all comments received into the docket and publish the comments on the Regulations.gov website without change, including any business or personal information provided such as name and address information, email addresses, or phone numbers. Comments received, including attachments and other supporting materials, are part of the public record and subject to public disclosure. Do not include any information in your comment or supporting materials that you consider confidential or inappropriate for public disclosure.

You may review comments and other related materials that pertain to this action by the following method:

Viewing Comments Electronically: Go to www.regulations.gov. Enter "Docket ID OCC-2022-0017" in the Search box and click "Search." Click on "Open Docket Folder" on the right side of the screen. Comments and supporting materials can be viewed and filtered by clicking on "View all documents and comments in this docket" and then using the filtering tools on the left side of the screen. Click on the "Help" tab on the Regulations.gov home page to get information on using Regulations.gov. The docket may be viewed after the close of the comment period in the same manner as during the comment period.

FDIC: You may submit comments, identified by FDIC RIN 3064-ZA33, by any of the following methods:

* Agency website: https://www.fdic.gov/resources/regulations/federal-register-publications/. Follow the instructions for submitting comments on the Agency website.

* Mail: James P. Sheesley, Assistant Executive Secretary, Attention: Comments RIN 3064-ZA33, Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 20429.

* Hand Delivery/Courier: Comments may be hand-delivered to the guard station at the rear of the 550 17th Street NW building (located on F Street NW) on business days between 7:00 a.m. and 5:00 p.m., ET.

* Email: [email protected]. Include the RIN 3064-ZA33 in the subject line of the message.

* Public Inspection: Comments received, including any personal information provided, may be posted without change to https://www.fdic.gov/resources/regulations/federal-register-publications/.

Commenters should submit only information that the commenter wishes to make available publicly. The FDIC may review, redact, or refrain from posting all or any portion of any comment that it may deem to be inappropriate for publication, such as irrelevant or obscene material. The FDIC may post only a single representative example of identical or substantially identical comments, and in such cases will generally identify the number of identical or substantially identical comments represented by the posted example. All comments that have been redacted, as well as those that have not been posted, that contain comments on the merits of this notice will be retained in the public comment file and will be considered as required under all applicable laws. All comments may be accessible under the Freedom of Information Act.

NCUA: You may submit comments by any one of the following methods (please send comments by one method only):

* Federal rulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments.

* Mail: Address to Melane Conyers-Ausbrooks, Secretary of the Board, National Credit Union Administration, 1775 Duke Street, Alexandria, Virginia 22314-3428.

* Hand Delivery/Courier: Same as mail address.

Public Inspection: You can view all public comments on the Federal eRulemaking Portal at http://www.regulations.gov as submitted, except for those we cannot post for technical reasons. NCUA will not edit or remove any identifying or contact information from the public comments submitted. Due to social distancing measures in effect, the usual opportunity to inspect paper copies of comments in the NCUA's law library is not currently available. After social distancing measures are relaxed, visitors may make an appointment to review paper copies by calling (703) 518-6540 or emailing [email protected].

FOR FURTHER INFORMATION CONTACT:

OCC: Beth Nalyvayko, Credit Risk Specialist, Bank Supervision Policy, (202) 649-6670; or Kevin Korzeniewski, Counsel, Chief Counsel's Office, (202) 649-5490. If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

FDIC: Thomas F. Lyons, Associate Director, Risk Management Policy, [email protected], (202) 898-6850; Peter A. Martino, Senior Examination Specialist, Risk Management Policy, [email protected], (813) 973-7046 x8113, Division of Risk Management Supervision; Gregory Feder, Counsel, [email protected], (202) 898-8724; or Kate Marks, Counsel, [email protected], (202) 898-3896, Supervision and Legislation Branch, Legal Division, Federal Deposit Insurance Corporation; 550 17th Street NW, Washington, DC 20429.

NCUA: Simon Hermann, Senior Credit Specialist, Naghi H. Khaled, Director of Credit Markets, Office of Examination and Insurance, (703) 518-6360; Ian Marenna, Associate General Counsel, Ariel Pereira, Senior Staff Attorney, Office of General Counsel, (703) 518-6540; or by mail at National Credit Union Administration, 1775 Duke Street, Alexandria, VA 22314.

SUPPLEMENTARY INFORMATION:

I. Background On October 30, 2009, the agencies, along with the Board of Governors of the Federal Reserve System (Board), the Federal Financial Institutions Examination Council (FFIEC) State Liaison Committee, and the former Office of Thrift Supervision, adopted the Policy Statement on Prudent Commercial Real Estate Loan Workouts, which was issued by the FFIEC (2009 Statement). /1/ The agencies view the 2009 Statement as being useful for both agency staff and financial institutions in understanding risk management and accounting practices for commercial real estate (CRE) loan workouts.

FOOTNOTE 1 See FFIEC Press Release, October 30, 2009, available at: https://www.ffiec.gov/press/pr103009.htm; See OCC Bulletin 2009-32 (October 30, 2009); FDIC Financial Institution Letter FIL-61-2009 (October 30, 2009); Federal Reserve Supervision and Regulation (SR) letter 09-7 (October 30, 2009); NCUA Letter to Credit Unions 10-CU-07 (June 2010). END FOOTNOTE

The agencies are proposing to update and expand the 2009 Statement by incorporating recent policy guidance on loan accommodations and accounting developments for estimating loan losses (proposed Statement). In developing the proposed Statement, the agencies consulted with state bank and credit union regulators. If finalized, the proposed Statement would supersede the 2009 Statement for all supervised financial institutions. /2/

FOOTNOTE 2 For purposes of this guidance, financial institutions are those supervised by the FDIC, NCUA, or OCC. END FOOTNOTE

II. Overview of the Proposed Statement

--This is a summary of a Federal Register article originally published on the page number listed below--

Proposed policy statement with request for comment.

RIN Number: "RIN 3064-ZA33"

Citation: "87 FR 47273"

Document Number: "Docket ID OCC-2022-0017"; "Docket ID NCUA-2022-0123"

Federal Register Page Number: "47273"

"Notices"