Federal Register: OCC Corrects Proposal Amending High Volatility Commercial Real Estate Exposures Definition

The Office of the Comptroller of the Currency (the "OCC") correctedthe OCC's Regulatory Flexibility Act ("RFA") certification pursuant to a proposal to amend the definition of "high volatility commercial real estate (HVCRE) exposure" in the agencies' respective regulatory capital rules. As previously covered, the proposal is intended to conform the proposed definition of "high volatility commercial real estate acquisition, development, or construction (HVCRE ADC) loan" to the requirements of Section 214 of the Economic Growth, Regulatory Relief, and Consumer Protection Act.

According to the agencies, the OCC's RFA incorrectly stated that the proposal most likely would affect "a substantial number of small entities." Upon further review, the OCC found that the proposal's impact "would not be economically significant." The correction affirms that the proposal would not significantly economically impact "a substantial number of OCC-supervised small entities."

Comments must be submitted by January 25, 2019.