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How will examiners view loan modifications?

Examiners will exercise judgment in reviewing loan modifications, and will not automatically adversely risk rate credits that are affected by COVID-19. All loan modifications should be consistent with safe and sound practices (including maintenance of appropriate allowances for loan and lease losses or allowances for credit losses, as applicable). Regardless of whether modifications are considered TDRs, section 4013 loans, or are adversely classified, Office of Banking, FDIC and FRB examiners will not criticize prudent efforts to modify terms on existing loans for affected customers.