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  • Federal Bank And Thrift Agencies Propose Guidance On Commercial Real Estate Lending - Federalreserve

Get Federal Bank And Thrift Agencies Propose Guidance On Commercial Real Estate Lending - Federalreserve

ARTMENT OF THE TREASURY Office of Thrift Supervision No. 2006-01 Concentrations in Commercial Real Estate Lending, Sound Risk Management Practices 1 AGENCIES: Office of the Comptroller of the Currency, Treasury (OCC); Board of Governors of the Federal Reserve System (Board); Federal Deposit Insurance Corporation (FDIC); and Office of Thrift Supervision, Treasury (OTS). ACTION: Proposed guidance with request for comment. SUMMARY: The OCC, Board, FDIC, and OTS (the Agencies), request comment.

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Depositors can name as many beneficiaries as they wish, however the coverage limit will not exceed $1,250,000 as of April 1, 2024. This coverage change applies to both existing and new trust accounts, for all deposit products, including CDs regardless of purchase or maturity date.

The CRE guidance includes a general expectation that an institution with CRE concentrations will conduct portfolio stress testing consistent with the size, complexity, and risk characteristics of its CRE loan portfolio. However, the guidance does not provide specific minimum expectations.

Commercial real estate (CRE) loans comprises acquisition, development, and construction lending and the financing of income-producing real estate. Income-producing real estate comprises real estate held for lease to third parties and nonresidential real estate that is occupied by its owner or a related party.

The Federal Reserve lends to banks and other depository institutions--so-called discount window lending--to address temporary problems they may have in obtaining funding.

The CRE guidance provides several internal and external factors that should be considered when establishing policies, such as market position, historical experience, present and prospective trade area, probable future loan and funding trends, staff capabilities, and technology resources.

Total CRE loans as defined in the CRE guidance represent 300 percent or more of the institution's total capital, and the outstanding balance of the institution's CRE loan portfolio has increased by 50 percent or more during the prior 36 months.

Banks with high CRE concentrations, and particularly those above the regulatory guidance to not exceed 300% of CRE to total risk-based capital, are being required to hold more capital.

The regulatory criteria looks at whether banks exceed either of two thresholds, CRE loans at least 300% of risk-based capital levels with growth of at least 50% over the past 36 months or construction (C&D) loans at least 100% of risk-based capital.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232