Acting Comptroller Discusses Efforts to Promote Lending and Investment in Distressed Communities

WASHINGTON—Acting Comptroller of the Currency Keith A. Noreika today discussed efforts by the Office of the Comptroller of the Currency (OCC) to support lending and investment in distressed communities.

During remarks at the National Association of Affordable Home Lenders Annual Conference, the Acting Comptroller described guidance finalized by the OCC in August that gives national banks and federal savings associations more flexibility to offer rehabilitation financing in communities with depressed home values. The guidance for certain higher-loan-to-value mortgage loans, commonly called higher-LTV loans, explains how banks can establish lending programs to originate home mortgages greater than 100 percent of the home’s value. The guidance applies to mortgages in areas officially targeted for revitalization by government agencies that do not exceed $200,000, support the purchase or purchase and rehabilitation of owner-occupied residential properties, and do not exceed 10 percent of the bank’s tier 1 capital in aggregate.

Related Links

• Remarks (PDF)
• Mortgage Lending: Risk Management Guidance for Higher-Loan-to-Value Lending Programs in Communities Targeted for Revitalization
• Acting Comptroller of the Currency Keith A. Noreika