Regulatory Alerts2021-06-25 | 2021-12973Real Estate Lending Standards
The Federal Deposit Insurance Corporation proposes to amend the Interagency Guidelines for Real Estate Lending Policies to align them with the community bank leverage ratio framework. The rule would require all FDIC-supervised institutions to calculate the ratio of loans exceeding supervisory loan-to-value limits using tier 1 capital plus the allowance for credit losses, eliminating the need to compute tier 2 or total capital. This change ensures consistent regulatory treatment for community banks opting into the simplified leverage ratio while avoiding additional compliance burdens associated with switching capital frameworks.
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