Skip to main content
U.S. flag
An official website of the United States government
Dot gov
The .gov means it’s official. 
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.
Https
The site is secure. 
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.
Press Release

Agencies Propose Rule on the Capital Treatment of Land Development Loans

For release at 2:00 p.m. EDT

The federal bank regulatory agencies today 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 (HVCRE) as required by the Economic Growth, Regulatory Relief, and Consumer Protection Act. 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.

The land development proposal would apply to all banking organizations subject to the agencies' capital rules. Comments will be accepted for 30 days after publication in the Federal Register .

# # #

Attachment: 
Regulatory Capital Treatment of Certain Land Development Loans for the Definition of High Volatility Commercial Real Estate Exposures 

PR-62-2019

Last Updated: July 12, 2019