Tag Archives: regulatory capital

HVCRE Rule Ignores Reality of Real Estate Market

The high-volatility commercial real estate (HVCRE) regulation, effective as of Jan. 1, 2015, mandates that, in order to be exempt from an HVCRE designation, borrowers who originate commercial acquisition, development and construction (ADC) loans must meet a 15 percent equity requirement, and the leverage on such loans cannot exceed 80 percent of the estimated completed value of the project.

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GSEs Issue New Seller, Servicer Eligibility Requirements

At the direction of the Federal Housing Finance Agency, Fannie Mae and Freddie Mac yesterday announced new standards that mortgage institutions would have to meet in order to sell loans to or service loans on behalf of the housing GSEs. The new standards include net worth, capital and liquidity requirements both for depository institutions and for nonbanks.

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Fed’s Tarullo Highlights ABA Proposal for Regulatory Relief

Speaking at an industry event in Washington, D.C., today, Federal Reserve Governor Daniel Tarullo floated an idea originated by ABA and the state bankers associations to relieve compliance burdens associated with capital rules. “One idea I have heard is to allow smaller community banks to opt into a simpler set of risk-weighted capital requirements in exchange for a higher minimum ...

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