Sound danger handling of loan purchase tasks generally includes

Sound danger handling of loan purchase tasks generally includes

Ceos of all of the National Banks, Federal Savings Associations, and Federal Branches and Agencies; Department and Division minds; All Examining Personnel; and Other Interested events


Any office regarding the Comptroller regarding the Currency (OCC) today issued this bulletin to share with banking institutions 1 of sound danger administration axioms loan that is regarding tasks. 2 Commercial and retail loan purchase tasks consist of buying entire loans, loan swimming pools, loan portfolios, loan participations, or participations in syndicated loans from other banking institutions or nonbank loan providers. 3 Lending activities, including loan purchase tasks, are susceptible to particular regulatory requirements and long-standing risk administration directions. The OCC expects banking institutions to take part in loan purchase tasks in a safe and sound way and in conformity with relevant accounting requirements, guidelines, and laws. Loan purchase tasks should align with banking institutions’ strategic plans and start to become supported by sound danger administration systems. 4


A bank’s loan purchase tasks should consistently be handled featuring its other financing tasks, this is certainly, with sound risk administration commensurate using the bank’s size, complexity, and risk profile.Continue reading