Supervisory Policy and Guidance Topics
Commercial Real Estate
One of the most prevalent pieces of commercial real estate (CRE) guidance is, "Concentrations in CRE Lending, Sound Risk-Management Practices (PDF)," which was issued on December 6, 2006. This interagency supervisory guidance was developed to reinforce sound risk-management practices for institutions with high and increasing concentrations of commercial real estate loans on their balance sheets.
Residential Real Estate and Mortgages
In addition to providing supervisory guidance regarding residential real estate lending, this subsection also contains guidance on subprime lending. Subprime lending involves extending credit to borrowers who exhibit characteristics that indicate a significantly higher risk of default than traditional bank lending customers.
The Federal Reserve Board’s real estate appraisal standards are found in Regulation H, subpart E, 12 CFR 208.50–51 for state member banks. For BHCs, the appraisal standards can be found in Regulation Y, subpart G, 12 CFR 225.61-67. The standards primarily focus on the responsibilities of the bank's board of directors for developing and issuing lending policies.
The Federal Reserve Board's Division of Consumer and Community Affairs issues Consumer Affairs (CA) letters addressing policy and procedural matters of continuing relevance to the Fed’s consumer compliance supervisory responsibilities.
- SR 13-19 / CA 13-21
- Guidance on Managing Outsourcing Risk
- SR 10-16
- Interagency Appraisal and Evaluation Guidelines
- SR 05-5
- Interagency FAQs on the Agencies' Appraisal Regulations and Interagency Statement on Independence of Appraisal and Evaluation Functions
- SR 95-27 (SUP)
- Interagency Statement on Appraisals for Affordable Housing Loans
- SR 95-16 (SUP)
- Real Estate Appraisal Requirements for Other Real Estate Owned (OREO)
- SR 94-35 (FIS)
- Amendments to the Real Estate Appraisal Regulation
Commercial Real Estate
- SR 09-7
- Prudent Commercial Real Estate Loan Workouts
- SR 07-1
- Interagency Guidance on Concentrations in Commercial Real Estate
- SR 05-14
- Interagency FAQs on Residential Tract Development Lending
- SR 02-19
- Use of Statistical Sampling in the Review of Commercial and Industrial Loans and Commercial Real Estate Loans during On-Site Safety and Soundness Examinations of Community Banks
- SR 93-33 (FIS)
- Clarification on Real Estate Lending Standards
- SR 93-11 (FIS)
- Real Estate Lending Standards
- SR 93-1 (FIS)
- Real Estate Lending Standards
Residential Real Estate / Mortgages
- SR 13-20 / CA 13-23
- Interagency Statement on Supervisory Approach for Qualified and Non-Qualified Mortgage Loans
- SR 13-9 / CA 13-6
- Minimum Standards for Prioritization and Handling Borrower Files with Imminent Scheduled Foreclosure Sale
- SR 12-11 / CA 12-10
- Guidance on a Lender’s Decision to Discontinue Foreclosure Proceedings
- SR 12-10 / CA 12-9
- Questions and Answers for Federal Reserve-Regulated Institutions Related to the Management of Other Real Estate Owned (OREO)
- SR 12-5/CA 12-3
- Policy Statement on Rental of Residential Other Real Estate Owned (OREO) Properties
- SR 10-14 (Revised)
- Implementation of Registration Requirements for Federal Mortgage Loan Originators
- SR 08-2 / CA 08-2
- Statement to Financial Institutions Servicing Residential Mortgages on Reporting Loss Mitigation of Subprime Mortgages
- SR 07-16
- Statement on Loss Mitigation Strategies for Servicers of Residential Mortgages
- SR 07-12
- Statement on Subprime Mortgage Lending
- SR 07-6
- Working with Mortgage Borrowers
- SR 06-15
- Interagency Guidance on Nontraditional Mortgage Product Risks
- SR 05-11
- Interagency Credit Risk Management Guidance for Home Equity Lending
- SR 05-10
- Accounting and Reporting for Commitments to Originate and Sell Mortgage Loans
- SR 03-4
- Risk Management and Valuation of Mortgage Servicing Assets Arising from Mortgage Banking Activities
- SR 01-4 (GEN)
- Guidance on Supervision of Subprime Lending
- SR 99-26 (SUP)
- Interagency Guidance on High Loan-To-Value Residential Real Estate Lending
- SR 99-6 (GEN)
- Subprime Lending
- SR 91-20
- Environmental Liability
- An Analysis of the Impact of the Commercial Real Estate Concentration Guidance (PDF) | HTML (April 4, 2013)
- Interagency Statement on Meeting the Needs of Creditworthy Borrowers (November 12, 2008)
Bank Holding Company Supervision Manual
- Section 2231.0, "Real Estate Appraisals and Evaluations"
- Section 3270.0, "Section 4(c)(8) of the BHC Act (Real Estate and Personal Property Appraising)"
- Section 3070.0, "Section 4(c)(8) of the BHC Act (Mortgage Banking)"
- Section 2128.08, "Subprime Lending (Risk Management and Internal Controls)"
Commercial Bank Examination Manual
- Section 2090.1, "Real Estate Loans"
- Section 2080.1, "Commercial and Industrial Loans"
- Section 2100, "Real Estate Construction Loans"
- Section 2103.1, "Concentrations in Commercial Real Estate Lending, Sound Risk–Management Practices"
- Section 2040.1, "Loan Portfolio Management" (Mortgage Banking Subsection)
- Section 2043.1, "Nontraditional Mortgages–Associated Risks"
- Section A.2040.3, "Loan Portfolio Management: Comprehensive Mortgage Banking Examination Procedures"
- Section 2133.1, "Subprime Lending"
- Section 2135.1, "Subprime Mortgage Lending"
- Section 2200.1, "Other Real Estate Owned"
- Section 4140.1, "Real Estate Appraisals and Evaluations"