# Capital: Qualifying Mortgage Loan, Interest Rate Risk Component, and Miscellaneous Changes
> **Treasury** · Final rule. · Published 2002-05-10 · Effective 2002-07-01 · 67 FR 31722
## Document
- **Document number:** 02-11673
- **Category:** other
- **Sub-agency:** Treasury
- **Federal Register citation:** 67 FR 31722
- **CFR reference:** 12 CFR 516
- **Publication date:** 2002-05-10
- **Effective date:** 2002-07-01
- **Treasury docket:** No. 2002-19
## Abstract

The Office of Thrift Supervision (OTS) is making miscellaneous changes to its capital regulations. These changes are designed to eliminate unnecessary capital burdens and to align OTS capital regulations more closely to those of the other federal banking agencies. Under the final rule, a one-to four-family residential first mortgage loan will qualify for a 50 percent risk weight if it is underwritten in accordance with the prudent underwriting standards found in the Interagency Guidelines for Real Estate Lending, including standards relating to loan-to-value (LTV) ratios. The final rule also clarifies certain issues regarding the calculation of the LTV ratio. OTS also is eliminating the requirement that a thrift must deduct from total capital that portion of a land loan or a nonresidential construction loan in excess of an 80 percent LTV ratio; eliminating the interest rate risk component of the risk-based capital regulations; modifying the definition of OECD-based country; and making a technical change to conform its treatment of reserves for loan and lease losses to that of the other federal banking agencies.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2002/05/10/02-11673/capital-qualifying-mortgage-loan-interest-rate-risk-component-and-miscellaneous-changes)
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