Agencies Propose Capital Rule on Land-Development Loans

Jul 15, 2019
Federal regulators invited public comment on a proposal to clarify the treatment of land-development loans under the agencies' capital rules.

This proposal expands on the agencies' September 2018 proposal to revise the definition of high-volatility commercial real estate as required by the S. 2155 regulatory relief law.

The land-development proposal would clarify that loans that solely finance the development of land for residential properties would meet the revised definition of HVCRE, unless the loan qualifies for another exemption.

Comments will be accepted for 30 days after publication in the Federal Register.

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