Regulators Clear Way for Certain Loan Modifications Amid Coronavirus Pandemic

Borrowers concerned about meeting loan obligations amid the Coronavirus pandemic may receive some relief from regulators who pledged to clear the way for critical loan modifications. The regulators from the FDIC, National Credit Union Administration, and Consumer Financial Protection Bureau said that institutions working with borrowers related to the COVID-19 pandemic will receive leeway by treating the loan modification as “Troubled Debt Restructurings” (TDRs) and will not automatically adversely affect the credit risk rating of the institution.

Borrowers requiring assistance need to act fast and reach out the to their lenders to ensure any COVID-19 relief is provided prior to falling out of good standing with the institution.

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