Regulatory Capital Rules: Treatment of Land Development Loans for the Definition of High Volatility Commercial Real Estate Exposure

Summary

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation are seeking public comment on a proposed rule that would clarify how loans used to develop land for residential properties should be treated in the definition of high volatility commercial real estate exposure under the agencies' capital rules, building on a 2018 proposal that aimed to align the definition with the EGRRCPA.