OCC Proposes Updating Regulatory Framework For OREO Activities

The Office of the Comptroller of the Currency ("OCC") proposed a rule that would (i) streamline regulations for national banks and (ii) update the regulatory framework for federal savings associations on "other real estate owned" ("OREO") activities. Previously, OREO activities by federal savings associations were guided by capital regulations and handbooks issued by the Office of Thrift Supervision ("OTS"). The proposed framework is generally consistent with the prior OTS framework.

The OCC proposed, among other changes, to:

• revise the terminology in the current definition of "debts previously contracted" real estate to "refer to leased real estate";
• modify the definition of "former banking premises" to include a reference to OCC Rule 7.1000(a)(2), which creates the categories of real estate that national banks and federal savings associations are allowed to own for use in their own banking activities;