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The Federal Reserve Publishes Policy on CRE Loan Accommodations and Workouts

Many in commercial real estate, especially relatively new to the industry and without extensive previous experience, are making use of leverage in ways that are problematic under the higher interest rates the Fed has instigated to head off inflation.

3 minute read October 01, 2022 at 12:03 AM
By
Erik Sherman
The Federal Reserve Publishes Policy on CRE Loan Accommodations and Workouts

In early August, four of the big financial regulatory agencies — Office of the Comptroller of the Currency, Treasury; Federal Deposit Insurance Corporation; and National Credit Union Administration — published in the Federal Register a proposed change to a 2009 policy addressing commercial real estate loan accommodations and workouts.

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