CHECK IT OUT. Iowa State Code 187-9.2(2) The Loan to Value Table for real estate is gone as of yesterday. The state code changed the basket (187-9.2(9)) yesterday to be 100% of capital. Things are looking better for state banks.

You may want to hold off on the happy dance. We are still subject to FDIC Part 365, which still contains the same old standards. See Part 365.2 Correct me if I'm missing something, though.

The fed's guidelines are just that - guidelines. It was the state's hard / fast rules that made things more difficult. I am not suggesting that we are going to fill up the portfolio with 100% LTV paper. There are clearly S&S issues to consider. If I have an 800+ FICA, 15% Debt / Income, 15 years on the job, I am not going to get bent out of shape about a 91% LTV. That is my reason to dance. I don't really think that I will even change our LTV policy at this point. The change in the state code allows me to make the decision based on my appetite for risk. What a concept!

This post is strictly for your information. I am not about to suggest that anybody change the way they approach LTV.