Explanation of Bill H.R. 2148

This bill is about making changes to the Federal Deposit Insurance Act in order to clarify the capital requirements for certain types of loans related to acquiring, developing, or constructing commercial real estate. It introduces new definitions and criteria for determining the capital standards for high volatility commercial real estate exposures (HVCRE) and HVCRE ADC loans.

Specifically, the bill states that depository institutions can only be subjected to higher capital standards for HVCRE exposures if they are HVCRE ADC loans. It goes on to define what constitutes an HVCRE ADC loan, including the criteria that need to be met in order for a credit facility to qualify as such.

The bill also outlines the conditions under which a credit facility can be reclassified as a Non-HVCRE ADC loan, once certain requirements are fulfilled.

Overall, this bill aims to provide clarity and regulation in terms of capital requirements for certain types of real estate loans.

Rep. Robert Pittenger

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