Robert D. Broeksmit Statement on Finalized HVCRE Risk-Based Capital Rule

Adam DeSanctis
(202) 557-2727

WASHINGTON, D.C. (November 20, 2019) -  Robert D. Broeksmit, CMB, President and CEO of the Mortgage Bankers Association (MBA), released the following statement on the federal bank regulatory agencies' - the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC) - final ruling released yesterday on the treatment of High Volatility Commercial Real Estate (HVCRE) exposures:

"The Federal Reserve, FDIC, and OCC's finalized risk-based capital rule on the treatment of High Volatility Commercial Real Estate (HVCRE) is the culmination of a years-long advocacy campaign to secure a legislative fix to the rule in the form of S. 2155-the Economic Growth, Regulatory Relief, and Consumer Protection Act, which MBA strongly supported.

"MBA is pleased with the agencies' modifications to proposed elements of the HVCRE rule, which include our key recommendations, such as clarification on the treatment of credit facilities that finance raw land and one-to-four-family residential properties. The resulting guidance in how banks apply the rule to identify and report HVCRE exposures is also beneficial to the industry.

"The final rule provides clarity, ensures borrowers have access to credit to grow their businesses, and reduces barriers to building more multifamily housing."