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Recap of Regulatory Announcement and Lender Next Steps to Implement Interagency Guidance

Posted by Jim Fraser on Mar 24, 2020 at 11:23 AM

As evidenced by Sunday’s joint announcement from the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC), the Consumer Financial Protection Bureau (CFPB), and State Banking Regulators from across the country; the U.S banking system is taking proactive steps to address unique financial impacts that are the byproduct of public health actions taken nationwide to address Covid-19. Lenders are being asked to confirm how loans were performing prior to Covid-19 so clear, documented change in status can be established.

The tolerances and recommendations provided in the Interagency guidance allows lenders to make safe and sound decisions that help borrowers through this difficult period. This includes actions on loans where:

  • Borrowers may not be able to meet contractual obligations
  • Borrowers may need loan modifications or extensions
  • Temporary payment deferrals may be required

Accounting classification and reporting flexibility was outlined in the guidance. It is incumbent on the lender to follow their internal accounting policies and back-up their actions with current and accurate data.

Topics: Jim Fraser, covid-19, lending

Jim Fraser

Jim Fraser

Jim Fraser has over 30 years of experience in financial services, with an emphasis in construction lending and real estate development. Fraser currently works at Built Technologies as Lending Channel Manager, overseeing Built's construction lending origination and loan administration platform solutions. Built’s platform has supported over $68B in construction commitments as of 2020 and is used by more than 130 of the nation’s leading construction lenders. Prior to working at Built, Fraser was EVP of Commercial Lending at Axos Bank [NYSE: AX], where he was responsible for commercial construction lending, income property, lender finance, equipment leasing and factoring, with a combined portfolio of $5 billion. Previously, Fraser was Managing Director at Banc of California [NYSE: BANC], managing $500 million in residential and CRE construction, including FNMA and FHA renovation lending programs under Banc Home Loans national mortgage lending brand and third-party, fee-based services under RenovationReady, a division of Banc Home Loans. He brings his banking expertise to the Built Technologies team as they build the leading solution for the entire construction finance ecosystem.

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