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Agencies Propose Updated HVCRE Treatment

Sept. 19, 2018 — Federal regulators invited public comment on a proposal to enact a provision of the S. 2155 regulatory relief law modifying capital rules for high-volatility commercial real estate exposures. The proposal would revise the definition of HVCRE exposures to conform to the statutory definition of HVCRE acquisition, development, or construction loans.

Under the proposal, ADC loans that had higher risk weights under the risk-based capital rules because they were considered HVCRE loans will not have higher risk weights as long as they are not HVCRE ADC loans. The proposal, which is consistent with S. 2155, has a narrower definition of what is considered an HVCRE ADC loan. In a statement issued in July, the agencies said this provision is effective immediately.

ICBA’s comprehensive matrix on the implementation of S. 2155 provides a line-by-line overview on all relevant provisions of the law.

Read More from Agencies

View July Agency Statement

Access ICBA Matrix

Learn More About S. 2155




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