OCC Finalizes Changes to OREO Regulations

The OCC is finalizing the first changes in two decades to its regulations on other real estate owned, or OREO. The rule—which is being adopted substantially as proposed in April—seeks to streamline and clarify OREO rules for national banks, while updating and harmonizing the framework for OREO activities at federal savings associations, the OCC said.

Specifically, the final rule addresses the holding period for OREO, the methods by which institutions may dispose of OREO, applicable appraisal requirements and permissible OREO expenditures and notification requirements. In addition, the agency is removing outdated capital rules for national banks and federal savings associations, which include provisions related to OREO.