News & Analysis as of June 3, 2025

Loan Modifications › Financial Institutions

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Loan modifications are changes made to the terms of an existing loan outside the specifications contained in the original loan agreement. In a mortgage situation, loan modifications are typically made to assist borrowers in meeting their obligations and avoid foreclosure. Such mortgage loan modifications may include reduction of principal amount or interest rate, lengthening of loan term, and monthly payment caps. less -

AB 238 Mortgage Deferment Act for California Wildfire: Mortgage Forbearance Relief

Blank Rome LLP on 1/27/2025

AB 238, also referred to as the Mortgage Deferment Act, to add Title 19.1 § 3273.20 et seq. (the “Mortgage Deferment Act” or the “Act”), was introduced in the California legislature on January 13, 2025 to provide essential...more

Lender FAQs: Understanding Texas Home Equity Loan Modifications

McGlinchey Stafford on 10/4/2024

As interest rates decline in 2024, lenders who make home loans to Texas residents are seeing an uptick in loan modification requests. Although a “mod” for a conventional loan is straightforward, there are – as always – unique...more

We Can Work It Out: The Need for Pre-Negotiation Agreements

Cadwalader, Wickersham & Taft LLP on 6/1/2023

In light of the current economic climate, real estate lenders and borrowers will certainly be communicating with one another frequently concerning potential loan modifications and accommodations. It is prudent for lenders to...more

Saving Loans for REMICs

Cadwalader, Wickersham & Taft LLP on 2/24/2023

Under the REMIC rules, a mortgage loan ceases to be a good REMIC asset if the borrower replaces the real property collateral with government securities (known as defeasance) less than two years after the REMIC’s startup date....more

FDIC announces Georgia disaster relief

Orrick, Herrington & Sutcliffe LLP on 1/25/2023

On January 20, the FDIC issued FIL-05-2023 to provide regulatory relief to financial institutions and help facilitate recovery in areas of Georgia affected by severe storms, straight-line winds, and tornadoes on January 12. ...more

Lenders Have No Duty to “Process, Review, and Respond Carefully and Completely” to Loan Modification Applications

Patton Sullivan Brodehl LLP on 4/29/2022

One of the unresolved issues over the past several years in the realm of lender liability law is whether lenders owe tort duties to borrowers in connection with loan modification applications. Until now, case law has been all...more

California’s Highest Court Confirms Lenders Owe No Duty to Borrowers to Process, Review, and Respond to Loan Modification...

Blank Rome LLP on 3/10/2022

Financial institutions, lenders, and servicers should take note that the California Supreme Court affirmed a Court of Appeal decision confirming there is no duty for a lender to “process, review and respond carefully and...more

Seth Eaton Discusses Modifications and Workouts of Commercial Real Estate Loans during the COVID-19 Pandemic

Winstead PC on 9/25/2020

Watch Real Estate Finance Shareholder Seth Eaton discuss loan modifications and how they have evolved throughout the COVID-19 pandemic. Seth outlines several different phases of loan modifications and highlights key points...more

Agencies Offer Regulatory Assistance in Disaster Affected Areas

Bradley Arant Boult Cummings LLP on 9/4/2020

On the first day of National Preparedness Month, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union...more

FFIEC Issues New Guidance on Loan Accommodations Related to COVID-19

Butler Snow LLP on 8/26/2020

At the onset of the pandemic, many financial institutions offered credit accommodations, such as short-term deferrals and other loan modifications, to borrowers in response to the significant adverse impact caused by...more

FFIEC Issues Joint Statement on Additional Loan Accommodations Related to COVID-19

Ballard Spahr LLP on 8/7/2020

On August 3, 2020, the Federal Financial Institutions Examination Council (“FFIEC”) issued a joint statement to provide prudent risk management and consumer protection principles for financial institutions to consider when...more

New York State Addresses Residential Mortgage Forbearance Procedures

Harris Beach Murtha PLLC on 6/30/2020

Newly enacted Banking Law 9-x, signed by New York Gov. Andrew Cuomo on June 17, 2020, provides certain financial institutions with a directive to address mortgage forbearances and repayment of deferred amounts granted during...more

Nutter Bank Report: April 2020

Nutter McClennen & Fish LLP on 5/1/2020

President Signs New COVID-19 Relief Bill into Law, Funding Additional PPP Loans - The Paycheck Protection Program and Health Care Enhancement Act was signed into law by President Donald Trump on April 24, providing $484...more

IRS Provides Relief for Securitized Mortgage Loan Modifications Anticipated from COVID-19

Holland & Knight LLP on 4/28/2020

The Internal Revenue Service (IRS) issued Revenue Procedure 2020-26 on April 13, 2020, providing relief to certain securitization vehicles, including investment trusts and real estate mortgage investment conduits (REMICs),...more

COVID-19 Update: Revisiting Pre-Negotiation Agreements in the Era of Covid-19

Cadwalader, Wickersham & Taft LLP on 4/18/2020

While the ramifications of the Covid-19 pandemic for real estate lenders and borrowers will unfold over time, at this point we know that lenders and borrowers will be communicating frequently and extensively regarding...more

Agencies Update Their Interagency Statement on Reporting Loan Modifications

Alston & Bird on 4/10/2020

Our Financial Services & Products Group discusses how federal agencies are clarifying how the Coronavirus Aid, Relief, and Economic Security (CARES) Act interacts with their previous statement on loan modifications and...more

Interagency Guidance On Loan Modifications By Financial Institutions For Customers Affected By COVID-19

McCarter & English, LLP on 4/6/2020

Recognizing the massive disruption to the U.S. economy and the American people created by COVID-19, federal banking regulators, consisting of the FDIC, the Federal Reserve Board, the Office of the Comptroller of the Currency,...more

Distressed Debt and Workout Agreements During the COVID-19 Pandemic

White and Williams LLP on 4/3/2020

Creditors facing a cascade of distressed credit facilities resulting from the economic fall-out from the COVID-19 pandemic will need experienced counsel at all stages of workouts, from preliminary discussions through the...more

Financial Institutions Should Be Proactive in Accommodating Borrowers Impacted by COVID-19

Ruder Ware on 4/1/2020

The extent to which COVID-19 will cause financial distress, or even financial ruin, to businesses throughout the State of Wisconsin is yet to be determined. We do know, however, that there will be many businesses that...more

Federal Agencies Offer Guidance on Loan Modifications Due to COVID-19

Troutman Pepper Locke on 3/27/2020

The Board of Governors of the Federal Reserve System (FRB) and certain other federal agencies issued an interagency statement on loan modifications and past-due loan policies in the wake of the economic disruption caused by...more

Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by COVID-19

Snell & Wilmer on 3/26/2020

On March 22, an interagency statement was issued by 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...more

Regulators Further Clarify Guidance Regarding Loan Modifications and Reporting

Alston & Bird on 3/26/2020

Our Financial Services & Products Group examines how federal regulators – speaking with a single voice – will view loan modifications during the coronavirus pandemic....more

Feds Issue Guidance To Financial Institutions Working With Customers Affected By COVID-19

Amundsen Davis LLC on 3/26/2020

As the Coronavirus Disease 2019 (COVID-19) continues to impact our nation, financial institutions are finding themselves in a situation wherein their customers are unable to, or are at risk of being unable to, make timely...more

Federal Agencies Issue Guidance on Loan Modifications Relating to COVID-19

Seyfarth Shaw LLP on 3/25/2020

On March 22, 2020, in response to the growing anticipation for loan modifications necessitated by the implications of the Coronavirus Disease 2019 (“COVID-19”), the Federal Reserve, Federal Deposit Insurance Corporation,...more

COVID-19 Update: Bank Regulators, Including the FDIC, Urge Financial Institutions To Collaborate With Pandemic-Affected Customers,...

Herbert Smith Freehills Kramer on 3/25/2020

On March 22, federal banking regulators, including the board of governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration, the Office of the...more

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Loan Modifications › Financial Institutions

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