This story appeared in Bank Digest.
The Federal Deposit Insurance Corporation, Federal Reserve Board, and Office of the Comptroller of the Currency are requesting comment on a proposal to modify their capital rules for high volatility commercial real estate exposures, as required by the Economic Growth, Regulatory Relief, and Consumer Protection Act. The proposal would revise the definition of "high volatility commercial real estate (HVCRE) exposure" to conform to the statutory definition of "high volatility commercial real estate acquisition, development, or construction (HVCRE ADC) loan," in accordance with the EGRRCPA.
The proposal would also establish principles for interpretation of certain terms in the revised definition, and the agencies request comment on whether any other terms in the revised definition would also require interpretation. Comments on the proposed rule must be received within 60 days of its publicatin in the Federal Register.