Name: Examiners Told to Begin Weighing Effect of Specialty Loans on Lenders’ Portfolios, as Bank Regulators Develop New Guidance
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SKU: 215363
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Bank regulators are directing federal examiners to look closely at banks’ overall real estate lending risk, particularly those that engage in non-traditional mortgage lending, and to take action if there is too much concentration on such loans. Comptroller John Dugan told examiners at a credit risk conference hosted by the Office of the Comptroller of the Currency in Atlanta last week that they should begin asking what banks intend to do with the so-called…