In an earlier posting, I reviewed the OCC’s new Commercial Real Estate Lending handbook . The purpose of the handbook is to give parenting – I mean guidance – on risks inherent in commercial real estate lending. On legal topics, the handbook takes a mind-boggling approach: it swings from legal light, to “I know it when I see it,” to neglect. Even with this inconsistency, my main complaint with the handbook is that, with a few exceptions, it misses the opportunity to give bank examiners and lenders guidance on important legal topics. Based on this, I give the handbook a gentleman’s C. (One reader followed up with me, and gave it a D.)
As we all know, guidance often comes in a list (starting with your first ”star chart” on the kitchen refrigerator). The OCC lending handbook needs a “star chart” on important legal topics.