Real Estate Loan Policy Update

Product Update Notification - 04/01/08

Real Estate Loan Policy Template Update

Bankpolicies.com is proud to announce the immediate availability of our revised Real Estate Loan Policy Template product.

This update is in response to the FDIC Financial Institution Letter FIL-22-2008 entitled "Managing Commercial Real Estate Concentrations in a Changing Environment" dated March 17, 2008. This guidance reemphasizes the importance of strong capital and loan loss allowance levels, and robust credit risk management practices for state nonmember institutions with significant concentrations of commercial real estate (CRE) loans, and construction and development loans. In addition, the letter complements the principles articulated in the interagency statement "Concentrations in Commercial Real Estate Lending, Sound Risk Management Practices" issued on December 6, 2006.

http://www.fdic.gov/news/news/financial/2008/fil08022.html

What's Revised

Topic 5 - Risk Management of Commercial Real Estate Loans. A new subtopic entitled "Additional Risk Management Measures" was added that includes measures to manage significant concentrations in construction and development and commercial real estate loans.

Topic 7 - Risk Management of Subprime Mortgage Lending. The "Workout Arrangements" subtopic was revised to include additional guidance regarding foreseeable loss mitigation techniques.

Product Contents

Purpose and Contents - Topic 1

Policy Statement - Topic 2

Definitions - Topic 3

Responsibility - Topic 4

Risk Management of Commercial Real Estate Loans - Topic 5

Risk Management of Nontraditional Mortgage Products - Topic 6

Risk Management of Subprime Mortgage Lending - Topic 7

Risk Management of Mortgage Fraud - Topic 8

Risk Management of Foreclosure - Topic 9

Risk Management of Predatory or Abusive Residential Mortgage Loans - Topic 10

General Credit Underwriting Guidelines - Topic 11

Commercial Term Real Estate Loans - Topic 12

Residential Term and Open Real Estate Loans - Topic 13

Residential Lot Loans - Topic 14

Construction Loans - Topic 15

Commercial Construction Loans - Income Producing - Topic 16

Owner Occupied Commercial Construction Loans - Topic 17

Acquisition, Development and Construction (ADC) Lending - Topic 18

Letters of Credit, Assurance or Cash in Lieu Bonds - Topic 19

Residential Construction Loans - Topic 20

Appraisal and Evaluation Program for Real Estate Loans - Topic 21

Title Insurance Procedures - Topic 22

Mortgage Loan Brokerage Guidelines - Topic 23

Staff Training - Topic 24

Retention of Documentation - Topic 25

Includes the following form templates:

Loan Presentation Form - Real Estate (8 pages)

Consumer ARM Notices (3 pages)

Real Estate Loan Action Plan and Status Report (2 pages)

Ordering Information

This product is available to purchase from Bankpolicies.com for:

$375.00 - List Price

- or -

$25.00* - Update Price

*Applies only to clients who have purchased the Real Estate Loan Policy Template within the last three years in addition to the following prior updates (if applicable):

Real Estate Loan Policy Template Update - 07/17/07 - $100.00

Real Estate Loan Policy Template Update - 01/09/07 - $150.00

Real Estate Loan Policy Template Update - 05/23/05 - $50.00

If you have ordered this product after 02/25/08 you are eligible to receive the product update at no charge.

Click here to place an order for this product. Clients who are eligible for our Legacy Rewards Volume Discount can apply their applicable discount level to the list or update price (whichever applies).

NOTE: Refer to our Place an Order page for important information regarding payment terms and our return policy. Orders placed for Product Updates are only available directly through Bankpolicies.com.

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