Agencies Finalize Proposed Rule Regarding Treatment of HVCRE
The FDIC, Federal Reserve and OCC today finalized a rule implementing a provision of the S. 2155 regulatory reform law regarding the treatment of high volatility commercial real estate.
The FDIC, Federal Reserve and OCC today finalized a rule implementing a provision of the S. 2155 regulatory reform law regarding the treatment of high volatility commercial real estate.
The federal banking agencies’ June proposal to clarify the regulatory capital treatment of land development loans for single-family homes does not conform with the intent of the S. 2155 regulatory reform law, ABA said in a comment letter yesterday.
In an effort to clarify their September 2018 proposal for high-volatility commercial real estate acquisition, development or construction loans, the banking agencies have issued an additional proposal to address the treatment of loans financing the development of land for one-to-four-family residential properties.
How a new tax incentive could drive commercial lending in rural communities.
The rapid pace of change will continue in 2019, ABA policy staff project.
As financial regulators consider the treatment of high-volatility commercial real estate under the S. 2155 regulatory reform law, the American Bankers Association in a comment letter today urged the agencies to reconsider applying the proposed 150 percent weighting to loans that fall under the statutory “HVCRE ADC” definition.
As expected, the financial regulatory agencies today issued a proposed rule implementing a provision of S. 2155, the new regulatory reform law, regarding the treatment of high volatility commercial real estate.
With the CRE lending market currently booming, banks are increasing their concentrations in this area — particularly in construction lending — according to findings from the 2018 Commercial Real Estate Lending Survey conducted by ABA.
How S. 2155 advances needed changes to real estate lending regulations.
In addition to outlining their approach to company-run stress testing and enhanced prudential standards in light of the new regulatory reform law, the agencies today also announced how they intend to approach the implementation of several other provisions of S. 2155.