Federal bank regulatory agencies issue final rule on treatment of high volatility commercial real estate
November 20, 2019 / Source: FRB
Joint Press Release
November 19, 2019
Federal bank regulatory agencies issue final rule on treatment of high volatility commercial real estate
Board of Governors of the Federal Reserve System
Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
For release at 2:30 p.m. EST
Three federal bank regulatory agencies finalized a rule to modify the treatment of high volatility commercial real estate (HVCRE) exposures as required by the Economic Growth, Regulatory Relief, and Consumer Protection Act.
The final rule clarifies certain terms contained in the HVCRE exposure definition, generally consistent with their usage in the Call Report instructions. The final rule also clarifies the treatment of credit facilities that finance one- to four-family residential properties and the development of land, which is substantially similar to the proposal issued in July.
Additionally, in response to the comments, the final rule provides banking organizations with the option to maintain their current capital treatment for acquisition, development, or construction loans originated between January 1, 2015, and the effective date of the final rule, April 1, 2020.
Media Contacts:
Federal Reserve Board
Eric Kollig
202-452-2955
FDIC
Julianne Breitbeil
202-898-6895
OCC
Stephanie Collins
202-649-6870
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Last Update: November 19, 2019