Large Bank Supervision Forum eBook

Internal Use Only The lending policy should reflect the level of risk that is acceptable to the board of directors and provide clear and measurable underwriting standards that enable the institution's lending staff to evaluate these credit factors. The Policy should address . . .

 The maximum loan amount by type of property.

 Maximum loan maturities by type of property.

Amortization schedules.

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 Pricing structure for different types of real estate loans.

Loan-to-value limits by type of property.

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Internal Use Only Supervisory LTV limits: Institutions should establish their own internal loan-to-value limits for real estate loans. These internal limits should not exceed the following supervisory limits:

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