FDIC asks for comment on proposed amendments to real estate lending standards – finance and banking

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United States: FDIC asks for comment on proposed amendments to real estate lending standards

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FDIC looking for comment on the proposed amendment to align the Agency’s Real Estate Lending Policy Guidelines (“Standards for Real Estate Lending”) with October 2020 revised Community Bank Leverage Ratio (CBLR) rule. The CBLR does not require electoral entities to calculate Tier 2 capital or total capital.

The proposed amendment would allow relevant community banking organizations and other insured financial institutions to calculate the ratio of loans in excess of supervisory loan limits to the amount (“LTV Limits”), “using Tier 1 capital plus an appropriate denominator for loan losses.” Without increasing the regulatory burden for such For organizations, including those that choose to switch between CBLR and generally applicable capital rules, the proposed amendment will assess the historical methodology outlined in the Real Estate Lending Standards for calculating loans in excess of supervisory LTV limits.

Comments on a proposal must be received within 30 days of its publication in the Federal Register.

The content of this article is intended to provide general guidance on the subject. You should seek professional advice regarding your specific circumstances.

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