The Federal Reserve Board (FRB), Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) – collectively, the “banking regulators” – on November 19 issued the final rule on how depository institutions should treat High Volatility Commercial Real Estate (HVCRE) loans. This final rule aligns the existing rules on HVCRE with the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), which was signed into law May 24, 2018.
As previously reported, NMHC and NAA contributed comments and input to legislators to EGRRCPA, resulting in a favorable outcome for the multifamily industry lowering borrowing costs on construction of new or renovation of existing apartments. The final rule issued by the banking regulators has an effective date of April 1, 2020, but allows banks to use either continue to use their existing capital allocation framework or to use the framework outlined in the new rule.
For more information on NMHC and NAA’s ongoing advocacy efforts on this topic, please visit our advocacy page.
- HUD Issues Forbearance Guidance and Outlines Tenant Protections
- NMHC and NAA Discuss Market Conditions and Rent Tracker at FHFA Quarterly Meeting
- FHFA Extends Forbearance for an Additional Three Months
- Enterprises Hire Financial Advisors as Next Step Towards Exiting Conservatorship
- FHFA Director Mark Calabria and HUD Secretary Ben Carson Testify Before Senate Banking