Continued weakness in the housing market and the rapid rise in foreclosures have increased the potential for higher levels of other real estate (ORE) held by FDIC-supervised institutions. This FIL reminds bank management of the importance of developing and implementing policies and procedures for acquiring, holding, and disposing of other real estate (ORE). "Guidance on Other Real Estate" is attached.
The attached "Guidance on Other Real Estate":
Emphasizes the need to properly maintain ORE.
Reinforces the importance of and details the expenses associated with maintaining and protecting ORE from further deterioration.
Addresses the need to comply with requirements for obtaining initial and updated values for ORE.
Summarizes the accounting and reporting standards for ORE in each phase of ownership: acquisition, holding period, and disposition.
FDIC-Supervised Banks (Commercial and Savings)