House Bill Would Take the Tax Heat Off CRE Debt Workouts

Many CRE property owners facing problems with their loans might look for a workout with a lender. Regulators have been promoting the move, as the Office of the Comptroller of the Currency; the Treasury; Federal Deposit Insurance Corporation; and National Credit Union Administration in July published the final revised version of a 2009 policy addressing commercial real estate loan accommodations and workouts.

It wasn’t everything and anything goes, but it offered heavy encouragement for banks, at least, to work out a loan before it would go bad. Lenders have their own separate reasons for doing workouts when possible, as it can avoid the need to take back property and to take a hit on a balance sheet.