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Commercial Real Estate

Commercial real estate (CRE) loans include loans secured by liens on condominiums, leaseholds, cooperatives, forest tracts, land sales contracts, construction project loans, and—in the states that consider them real property—oil and mineral rights. National banks may make, arrange, purchase, or sell loans or extensions of credit secured by liens on interests in real estate.

You will find the standards for real-estate-related lending and associated activities by national banks in Real Estate Lending and Appraisals (12 CFR 34). For additional commercial real estate resources, see Appraisals.

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Interagency Statement on Prudent Risk Management for Commercial Real Estate Lending (December 18, 2015)
The interagency statement of 2015 reminds financial institutions to implement prudent risk management practices and capital levels commensurate with the level and nature of the institution's CRE concentration risk. It also highlights existing regulations and guidance related to CRE lending.

Commercial Real Estate Lending (Comptroller's Handbook, January 2017)
Focuses on the analysis of project financing and the legal approaches a borrower may take to hold legal title to the real estate

Residential Real Estate (Comptroller's Handbook, January 2017)
Addresses real estate loan policy, environmental risk, unsound mortgage loans, home equity lines of credit, and adjustable rate mortgages


Commercial Real Estate (CRE) Loans (OCC 2009-32, October, 2009), Policy Statement
Provides guidance on prudent CRE loan workouts and includes workout examples

Concentrations in Commercial Real Estate Lending (OCC 2006-46, December 2006), Guidance (Federal Register, December 12, 2006)
Provides sound risk management practices that institutions with commercial real estate concentration risk should employ

Guidelines for Capitalization of Interest on Loans (EC 229, May 1985)
Describes OCC policies on the accounting treatment for capitalization of interest on loans

Interagency Guidelines for Real Estate Lending Policies (OCC 1999-38, October 1999), Interagency Guidance
Addresses treatment of high loan-to-value residential real estate loans

Residential Tract Development Lending (OCC 2005-32, September 2005), FAQ
Addresses appraisal requirements for residential tract developments, land, and loans structured with a revolving line of credit

Tax Lien Certificates (OCC 2004-39, August 2004)
Describes the risk management practices the OCC expects national banks to exercise when purchasing tax lien certificates