In October 2013, financial institution regulatory agencies issued Interagency Supervisory Guidance Addressing Certain Issues Related to Troubled Debt Restructurings.
In this release, the agencies reiterated that modifications of problem loans are often in the best interest of both the institution and the borrower and can lead to improved loan performance and reduced credit risk. This release does not contain any new guidance, but it addresses certain problem areas the agencies are uncovering in some financial institutions. To read the interagency guidance, visit http://www.federalreserve.gov/bankinforeg/srletters/sr1317a1.pdf
. Following are some of the highlights from this guidance.