The Federal Financial Institutions Examination Council (FFIEC) last week issued a statement setting forth prudent risk management and consumer protection principles for financial institutions to consider while working with borrowers as initial coronavirus-related loan accommodation periods come to an end and they consider additional accommodations.
The agencies, which include NCUA and the Consumer Financial Protection Bureau (CFPB) encourage financial institutions to consider, when appropriate, prudent options for additional accommodations that can ease cash flow pressures on affected borrowers, improve their capacity to service debt, and facilitate the financial institution’s prudent management of its loans, consistent with applicable laws and regulations.
FFIEC recommends the following risk management and consumer protection principles for financial institutions to work with borrowers in a safe and sound manner: