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Advisory Bulletin

Clarification of Implementation for Advisory Bulletin 2012-02

Number: AB 2013-02
Pertains To: All
5/13/2013

​ADVISORY BULLETIN

AB 2013-02

Clarification of Implementation for Advisory Bulletin 2012-02, Framework for Adversely Classifying Loans, Other Real Estate Owned, and Other Assets and Listing Assets for Special Mention

 

Background

On April 9, 2012, the Federal Housing Finance Agency (FHFA) issued Advisory Bulletin 201202, Framework for Adversely Classifying Loans, Other Real Estate Owned, and Other Assets and Listing Assets for Special Mention. That guidance establishes a standard methodology for classifying loans, other real estate owned, and certain other assets, excluding investment securities, and prescribes the timing of asset charge-offs based on these classifications. Advisory Bulletin 2012-02 was effective upon issuance; however, FHFA has subsequently clarified details of the implementation date.

Guidance

Implementation of the asset classification framework may occur in two phases. The asset classification provisions in Advisory Bulletin 2012-02 should be implemented by January 1, 2014. The charge-off provisions have been extended and should be implemented no later than January 1, 2015.

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