April 2020 E-Newsletter

april 2020 e-newsletter image of medium and high risk factorIn their Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus issued on March 22, 2020, the regulatory agencies made it clear they “…will not automatically adversely risk rate credits that are affected by COVID-19, including those considered TDRs.” Adverse risk ratings are Special Mention, Substandard, Doubtful, and Loss.  Consequently, just because you modified a loan for a borrower impacted by COVID-19, does not mean you have to rate those loans Special Mention or worse.

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