Regulatory Capital Treatment for High Volatility Commercial Real Estate (HVCRE) Exposures

Title: Regulatory Capital Treatment for High Volatility Commercial Real Estate (HVCRE) Exposures
Subject: HVCRE
Agency: OCC, Federal Reserve, FDIC
Status: Final rule
Summary:
The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively, the agencies) are adopting a final rule to revise the definition of “high volatility commercial real estate (HVCRE) exposure” in the regulatory capital rule. This final rule conforms this definition to the statutory definition of “high volatility commercial real estate acquisition, development, or construction (HVCRE ADC) loan,” in accordance with section 214 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). The final rule also clarifies the capital treatment for loans that finance the development of land under the revised HVCRE exposure definition.
FR Doc: 2019-26544
Date proposed:
Comments due date: November 27, 2018
Final rule effective date: April 1, 2020
Rule compliance date:
Agency release: Agencies Propose Rule Regarding the Treatment of High Volatility Commercial Real Estate
Related Reg Report item(s): OCC adds explanation of small-entity costs of HVCRE proposal

Fed, FDIC, OCC propose HVCRE changes required by reg relief law

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