OCC to clarify OREO regulations

Agency Rule-Making & Guidance OCC Examination

On April 24, the OCC published a notice of proposed rulemaking (NPRM) and request for comment on a proposal to clarify and to streamline its other real estate owned (OREO) regulations for supervised national banks and to apply the same regulatory framework to federal savings associations. Specifically, the OCC seeks public comment on questions relating to its proposals regarding OREO holding periods, OREO disposition, and permissible OREO expenditures. The NPRM also addresses OREO appraisal requirements. Finally, the NPRM proposes technical amendments to remove certain outdated capital rules for national banks and federal savings associations, including provisions relating to treatment of OREO held by Federal savings associations that are no longer in effect. According to the OCC, this proposal would be the first significant revision to OREO regulations in more than 20 years. Comments on the NPRM are due by June 24.