COVID-19’s reach has extended into lending, leading the Agencies to issue various regulatory guidance. Learn the current areas of examiner focus and how pandemic-related loan modifications and risk assessments have been impacted.
- Discuss these regulatory guidance
- Interagency Examiner Guidance for Assessing Safety & Soundness Considering the Effect of the COVID-19 Pandemic on Institutions (June 2020)
- Joint Statement on Additional Loan Accommodations Related to COVID-19(August 2020)
- Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (April 2020)
- Review and address the actions needed to provide accurate risk ratings, especially for borrowers highly impacted by COVID-19
- Differentiate between Section 4013 modifications and interagency short-term modifications, including required monitoring and tracking of Section 4013modifications
A proactive approach to identifying, measuring, and mitigating credit risk resulting from the effects of COVID-19 should be a top priority in the third and fourth quarters of 2020.As part of prudent portfolio management practices, it is imperative that management understands examination factors – in addition to best practices for identifying and assessing risk grades for borrowers affected by the pandemic.
The Agencies have provided guidance regarding the impact of COVID-19 on financial institutions. This presentation will provide a summary narrative of select Agency topics, including examiner guidance for assessing safety and soundness, additional COVID related accommodations, and modification classifications in response to the pandemic. In addition, this webinar will provide management with proactive measures and considerations to contemplate to provide timely and accurate risk assessment due to the effect of COVID-19.
Aaron Lewis, Young & Associates, Inc.
Aaron Lewis is a senior consultant at Young & Associates, Inc. With over 15 years in the
banking industry, his expertise is now dedicated to the lending division of Young &
Associates where he assists financial institutions with loan, ALLL, policy, and credit process and compliance reviews. He also conducts seminars on credit risk and compliance.
Prior to joining Young & Associates, Aaron was the Vice President Credit Administrator of
a community financial institution in southeast Michigan and managed all facets of the
lending function, including originations, underwriting, ALLL analysis, servicing, and
secondary market compliance. He holds a Bachelor’s in finance from Michigan State
University and graduated from the Graduate School of Banking, University of Wisconsin.