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#1748469 - 10/11/12 03:38 PM OREO question
MsIndependent Offline
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Maryland
I am conducting an OREO audit and am coming up blank for regulatory guidance on how aggressively a financial institution can/should write down the balance of OREO properties. Is there guidance at all? Or does management have free reign to write it down to bargain basement prices that do not even come close to the most recent appraisal/evaluation? We are a FDIC regulated bank.

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#1748540 - 10/11/12 05:12 PM Re: OREO question MsIndependent
RR Sarah Online
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RR Sarah
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Here's a link to the FDIC guidance on OREO.

http://www.fdic.gov/news/news/financial/2008/fil08062a.html
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#1748561 - 10/11/12 05:37 PM Re: OREO question RR Sarah
MsIndependent Offline
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Maryland
Thank you for replying. I have that guidance and unfortunately it really does not adress my question. I appreciate your time and help

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#1748565 - 10/11/12 05:41 PM Re: OREO question MsIndependent
Skittles Offline
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TN
You might check with your state also. If I remember correctly Georgia requires an annual appraisal while Kentucky doesn't - however Kentucky does require an annual write-down of 10% each year if the property hasn't sold.
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#1748589 - 10/11/12 06:17 PM Re: OREO question Skittles
RR Sarah Online
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Here's the OCC guidance. We are an OCC bank and it is what we follow.

http://occ.gov/publications/publications-by-type/comptrollers-handbook/oreo1.pdf
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#1748626 - 10/11/12 07:08 PM Re: OREO question RR Sarah
MsIndependent Offline
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Joined: Feb 2004
Posts: 17
Maryland
Thanks so much for your guidance and help. smile

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