Real Estate Lending Standards

Title: Real Estate Lending Standards
Subject: LTV limits, CBLR
Agency: FDIC
Final rule

The FDIC is issuing a final rule to amend Interagency Guidelines for Real Estate Lending Policies (Real Estate Lending Standards). The purpose of the final rule is to incorporate consideration of the community bank leverage ratio (CBLR) rule, which does not require electing institutions to calculate tier 2 capital or total capital, into the Real Estate Lending Standards. The final rule allows a consistent approach for calculating the ratio of loans in excess of the supervisory loan-to-value limits (LTV Limits) at all FDIC-supervised institutions, using a methodology that approximates the historical methodology the FDIC has followed for calculating this measurement without requiring institutions to calculate tier 2 capital. The final rule also avoids any regulatory burden that could arise if an FDIC-supervised institution subsequently decides to switch between different capital frameworks.

FR Doc: 2021-23381
Date proposed: June 15, 2021
Comments due date: July 26, 2021
Effective date:

Nov. 26, 2021

Rule compliance date:
Agency release:
Related Reg Report item(s): Proposal seeks to align real estate lending standards with new CBLR rule