Bank/Thrift Supervision   |    Capital    |    CFPB    |    Deposit Insurance    |    Interchange    |    Mortgage Finance
Municipal Advisors   |    OCC-OTS Merger   |    Preemption    |    QM - QRM    |    Swaps   |    Volcker Rule    |    Full Topics List
Qualified Mortgage - Qualified Residential Mortgage
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Deposit Insurance
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Tuesday, August 22, 2017

OCC Issues Guidance on Programs for Home Loans with Over 100 Percent LTV

Noting that in many communities persistently depressed home prices are hindering recovery, the OCC issued guidance for OCC-regulated banks seeking to develop programs to offer home loans with loan-to-value ratios of over 100%, known as “higher-LTV” loans. These programs may be eligible for Community Reinvestment Act credit.

“The OCC recognizes that supporting long-term community revitalization may necessitate responsible, innovative lending strategies,” the agency said. “The OCC believes that in some circumstances, a bank also can design a program to offer higher-LTV loans in communities targeted for revitalization in a manner consistent with safe and sound lending practices and current regulations and guidelines.”

Such programs would apply to purchase loans or purchase plus rehabilitation of owner-occupied properties in communities “officially targeted” for revitalization by federal, state, municipal or other government-designated entities. Eligible loans would be permanent first-lien mortgages with LTV ratios exceeding 100 percent, without mortgage insurance or other acceptable collateral and with an original loan balance of $200,000 or less.

The guidance also provides information about the required policies and procedures under such a program and about the process and timing for notifying the OCC about starting or modifying a program. “Bank lending under such a program may serve the credit needs of individual borrowers and the community, and the bank may receive Community Reinvestment Act consideration depending on the specifics of the program,” the agency added.

Read the guidance


Lambert Casati said...

i like your blog, you are a good writer!

Vishal Tyagi said...

Hello Guys, Here you will be able to find out the best website for duck life five free online games and these games are of entertaining games. You can access to these games online without facing any type of hurdle and these games are available in the best quality. You can play these games with the help of keys and can have a great entertainment. Try out these games for once.

Post a Comment

Please read our comment policy before making a comment.