Mortgage loans risk weighted at 50 percent before modification would continue to
be risk weighted at 50 percent after modification provided they continue to meet
other applicable prudential criteria. Mortgage loans risk weighted at 100
percent would continue to be risk weighted at 100 percent after modification.
Under the FDIC's general risk-based capital rules, a state nonmember bank may
assign a 50 percent risk weight to any modified mortgage loan, provided the
loan, as modified, is not 90 days or more past due or in nonaccrual status and
meets other applicable criteria for a 50 percent risk weight. Thus, the
revisions provided under this interim final rule relative to the FDIC's
risk-based capital rules are clarifying in nature.
Consistent with current practice, the agencies will continue to allow past due
and nonaccrual loans that receive a 100 percent risk weight to return to a 50
percent risk weight under certain circumstances, including after demonstration
of a sustained period of repayment performance.
FDIC-Supervised Banks (Commercial and Savings)
Chief Executive Officer
Chief Financial Officer
Chief Accounting Officer
Risk-Based Capital Rules
12 CFR Part 325
Interim Final Rule for Mortgages Modified
Under the Making Home Affordable Program
Interim Final Rule for Mortgages
Modified Under the Making Home Affordable Program - PDF (PDF Help)
Ryan D. Sheller, Senior Capital Markets Specialist, at firstname.lastname@example.org or (202) 898-6614
Mark Handzlik, Senior Attorney, at email@example.com or (202) 898-3990
FDIC financial institution letters (FILs) may be accessed from the FDIC's Web site
To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters may be obtained through the
FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226
(1-877-275-3342 or 703-562-2200).