Tips for In-House Counsel
December 18, 2009
New FDIC Guidelines Offer Helpful Hints for Real Estate Workouts
By Michael J. Zerman of Zuber & Taillieu LLP
On October 30, 2009, the Federal Deposit Insurance Corporation (“FDIC”), together with other federal regulatory agencies, adopted a “Policy Statement on Prudent Commercial Real Estate Loan Regulation.” (http://www.fdic.gov/news/news/press/2009). The policy statement stresses that prudent workouts of commercial real estate loans are often in the best interest of both the lender and the borrower, and that regulators will support efforts by regulated financial institutions to modify performing loans to creditworthy borrowers, even if the value of commercial real estate collateral for such loans has declined.
In addition to the broad policy statement endorsing prudent loan workouts, the guidelines also…
To continue reading this article, subscribe now
It's FREE and only takes seconds
About the Author
Michael J. Zerman is a Partner of Zuber & Taillieu LLP, focusing on real estate law.