Other Real Estate Owned: Final Rule

The Office of the Comptroller of the Currency (OCC) published a final rule on other real estate owned (OREO) activities for national banks and federal savings associations. OREO refers to real estate acquired in satisfaction of debts previously contracted and real estate no longer used or planned to be used to conduct banking activities. The final rule is effective January 1, 2020.

The final rule:

• clarifies and streamlines the OCC's existing OREO rule for national banks.
• updates the regulatory framework for OREO activities at federal savings associations.
• makes technical amendments to the capital rules, including on provisions related to OREO.

Note for Community Banks:

The final rule applies to all national banks and federal savings associations.