FDIC Adopts Amendments to Real Estate Lending Standards

The FDIC adopted amendments that will incorporate the October 2020 revised community bank leverage ratio rule with the Interagency Guidelines for Real Estate Lending Policies.

As previously covered, the amendments will allow qualifying community banking organizations and other insured financial institutions to calculate the ratio of loans that exceed the supervisory loan-to-value limits "using tier 1 capital plus the appropriate allowance for credit losses in the denominator."

The FDIC stated that the amendments were adopted without any changes from the June 2021 proposal and will go into effect 30 days after their publication in the Federal Register.