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Loan guidelines and requirements from Office of the Comptroller of the Currency (OCC)



Main guidelines and requirements for national banks and thrift institutions


The Office of the Comptroller of the Currency (OCC) is a U.S. government agency that is responsible for regulating national banks and thrift institutions. As part of this role, the OCC has established a number of guidelines and requirements for these financial institutions to follow when it comes to lending, including commercial lending.

Here is a list of some of the main guidelines and requirements for national banks and thrift institutions related to lending, as established by the OCC:

1. Written lending policy: National banks and thrift institutions must have a written lending policy in place that outlines their risk management processes and procedures, as well as their standards for underwriting and approving loans. 2. Credit risk management: National banks and thrift institutions must have a process in place to manage credit risk, including identifying and measuring credit risk, setting risk limits, and monitoring and controlling credit risk. 3. Loan underwriting: National banks and thrift institutions must have a process in place for underwriting loans, including evaluating the creditworthiness of borrowers, assessing the value of collateral, and determining the appropriate loan terms and conditions. 4. Loan documentation: National banks and thrift institutions must have a process in place for preparing and reviewing loan documentation, including loan agreements, promissory notes, and other legal documents. 5. Loan monitoring and reporting: National banks and thrift institutions must have a process in place for monitoring the performance of their loan portfolios, including tracking the credit quality of loans and the financial health of borrowers. 6. Loan portfolio diversification: National banks and thrift institutions must diversify their loan portfolios in order to manage risk and avoid concentrations of credit risk. 7. Loan exceptions: In some cases, national banks and thrift institutions may need to request exceptions to certain lending requirements. These exceptions must be approved by the OCC.


These guidelines and requirements are designed to help national banks and thrift institutions manage the risks associated with lending and ensure that they are providing credit in a safe and sound manner.


Guidelines and requirements for commercial lending, including exceptions and monitoring

The Office of the Comptroller of the Currency (OCC) is a U.S. government agency that is responsible for regulating national banks and thrift institutions. As part of this role, the OCC has established guidelines and requirements for these financial institutions to follow when it comes to commercial lending, including exceptions and monitoring.

Commercial loans are loans that are made to businesses for a variety of purposes, including financing the purchase of real estate, equipment, and other business assets. These loans can be secured or unsecured, and they may have fixed or variable interest rates. One of the key guidelines that the OCC has established for national banks and thrift institutions that engage in commercial lending is the requirement to have a written commercial lending policy in place. This policy must outline the bank's risk management processes and procedures, as well as its standards for underwriting and approving commercial loans.

In some cases, national banks and thrift institutions may encounter situations where it is necessary to request an exception to certain requirements for commercial loans. For example, a bank may request an exception to certain underwriting standards in order to accommodate a unique or complex transaction. When a national bank or thrift institution seeks an exception to certain requirements for a commercial loan, it must submit a request to the OCC. This request must outline the reason for the exception, as well as the bank's risk management processes and procedures. The OCC will review the request and determine whether or not to grant the exception.

In addition to these guidelines for exceptions, the OCC also has requirements for national banks and thrift institutions to regularly monitor the performance of their commercial loan portfolios. This includes tracking the credit quality of these loans, as well as the financial health of the borrowers. By closely monitoring the performance of commercial loans, banks can identify potential issues early on and take steps to mitigate any risks.

Overall, the OCC's guidelines and requirements for commercial lending, including exceptions and monitoring, are designed to help national banks and thrift institutions manage the risks associated with these loans. By following these guidelines and requirements, these financial institutions can help ensure that commercial lending is conducted in a safe and sound manner, which helps to protect both the financial institutions and their customers.


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