WSBI member ICBA letter to U.S. regulators calls on agencies to consider all facts to make sound judgments on whether elevated risk exists.
WASHINGTON, D.C. , 17 April 2015 – ICBA urged federal regulators to rein in punitive capital charges on community banks that lend to foreign nationals of countries that have been deemed to be "value impaired" by the agencies’ Interagency Country Exposure Review Committee. In a letter to regulators, ICBA called on the agencies to consider all facts and circumstances to make sound judgments on whether an elevated risk exists.
U.S. community banks that lend to foreign nationals on their purchase of U.S. residential real estate receive a 10 percent regulatory charge to capital even though collateral is domestic, underwriting is prudent, borrowers have demonstrated extensive liquidity, debt service is sourced domestically, and any potential legal remedies are carried out in the U.S. court system.
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