For example, to accurately value collateral, rental and sale prices of commercial property in the borrower’s area, the average amount of time it takes to sell or rent property and anticipated changes in these rates are assessed. … Although the arranging of a CRE workout shows a borrower’s inability to stand by the terms of their original loan and hence would seemingly justify a more severe loan classification, the FDIC’s policy update encourages leaving the loan grading …
Continued here:
The FDIC Recognizes the Value of Prudent Commercial Real Estate …
