Alert July 15, 2008

FDIC Issues Letter Regarding Policies and Procedures for REO Property

The FDIC issued a letter emphasizing the importance of sound policies and procedures in connection with real estate owned property. The letter addresses, among other things, the need to comply with requirements for obtaining initial and updated valuations for REOs, the importance of maintaining REOs to prevent asset deterioration, and the significance of reporting and accounting standards for REOs during acquisition, as well as during holding and disposition periods. Click here for the letter.