On September 17, the OCC issued guidance to national banks and federal savings associations on risk management practices for investor-owned, one- to four-family residential real estate lending where the primary repayment source for the loan is rental income. The guidance includes: (i) credit risk management expectations; (ii) loan underwriting standards; (iii) loan identification and portfolio monitoring expectations; (iv) allowance for loan and lease losses considerations; (v) internal risk assessment and rating systems; and (vi) regulatory reporting, HOLA, and risk-based capital treatment. OCC Release.
