Tuesday, March 29, 2011

OCC Issues Warning on Real Estate-Owned Exchange Programs


The Office of the Comptroller of the Currency (OCC) has issued a notice to the chief executives of all the lenders it regulates warning them of the risks involved in real estate-owned exchange programs. Several companies have started marketing real estate-owned exchange programs to national banks as a means to reduce problem assets on their balance sheets, but the OCC says these programs "can raise significant safety and soundness, legal, and accounting concerns."