Regulatory Alerts2021-10-04
Idaho Department of Finance Guidance on Disposition of Bank-Owned Real Estate
The Idaho Department of Finance issued Guidance Statement 2021-01-FIB to clarify the application of amended Idaho Code § 26-707 regarding the holding and disposition of Other Real Estate Owned (OREO) by Idaho-chartered banks. The guidance eliminates the mandatory twenty percent annual write-down for OREO held during a second five-year period, while requiring banks to demonstrate a good faith attempt to dispose of the property or prove that disposal would be detrimental to the bank's safety and soundness. It further defines the start of the holding period relative to foreclosure redemption rights and establishes specific criteria for acceptable listing prices and marketing efforts to justify extension requests.
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