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111 Banking L.J. 136 (1994)
The New Real Estate Lending Standards for Banks

handle is hein.journals/blj111 and id is 136 raw text is: THE NEW REAL ESTATE LENDING STANDARDS FOR BANKS Gary A. Goodman* The author analyzes the Uniform Rule on real estate lending for banks as well as the accompanying Guidelines. He analyzes the text of the Guidelines with respect to loan portfolio management considerations, underwriting standards, and loan administration proce- dures. He discusses what the Guidelines mean in terms of actual administrative enforcement and the potential hardship to banks presented by the Guidelines. As part of the response to the financial debacle of the late 1980s, Congress enacted the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA).' Title 11 of FIRREA required that all of the four federal banking agencies' (collectively, the Agencies), the National Credit Union Administration, and the Resolution Trust Corporation prescribe appropriate standards for the performance of real estate appraisals in connection with federally related transactions under the jurisdiction of each such agency. Substantially similar regulations were adopted by such agencies the following year, mandating that all appraisals conform to the Uniform Standards of Professional Appraisal Practice promulgated by the Appraisal Standards Board of the Appraisal Foundation.' * Partner in the New York office of LeBoeuf, Lamb, Greene & MaRae, specializing in secured lending. Mr. Goodman gratefully acknowledges the invaluable assistance of Andrew N. Adler, a third-year law student at University of Michigan Law School, who was a summer associate at LeBoeuf, Lamb, Greene & MaRae in 1993. ' 12 U.S.C. §§ 3310, 3331-3351 (1989). 2 The Federal Deposit Insurance Corp. (FDIC), the Federal Reserve Board (FRB), the Office of the Comptroller of the Currency (OCC), and the Office of Thrift Supervision (OTS). 3 See 55 Fed. Reg. 34,684 (1990) (OCC); 55 Fed. Reg. 27,762 (1990) (FRB); 55 Fed. Reg. 33,879 (1990) (FDIC); 55 Fed. Reg. 34,532 (1990) (OTS); 55 Fed. Reg. 30,199 (1990) (NCUA); 55 Fed. Reg. 34,219 (1990) (RTC), amended, 57 Fed. Reg. 12,190 (1992) (OCC); 57 Fed. Reg. 9,043 (1992) (FDIC); 57 Fed. Reg. 12,698 (1992) (OTS), codified at 12 C.F.R. pts. 34 (OCC); 208, 225 (FRB); 323 (FDIC); 545, 563, 564 (OTS) (1993); 722 (NCUA); 1608 (RTC); amendments proposed, 58 Fed. Reg. 31,878 (1993). 136

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