HVCRE Clarification Finally Arrives – Congress Passes Legislation Addressing Treatment of ADC Loans under the Capital Rules

05/23/2018
Client Alert

On May 22, 2018, Congress passed a financial regulatory reform bill, S. 2155, the “Economic Growth, Regulatory Relief, and Consumer Protection Act” (the “Reform Bill”). Among other things, the Reform Bill clarifies the treatment of acquisition, development, and construction (ADC) loans characterized as high volatility commercial real estate (HVCRE) exposures under the U.S. Basel III capital rules. It is expected that President Trump will soon sign the legislation. This Client Alert provides a summary of how ADC loans will be treated under the Reform Bill once it becomes effective.

Read our client alert.

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