OTS proposes relaxed restrictions, swears in new director

Northwestern Financial Review, Jan 1, 2002

The Office of Thrift Supervision is proposing to relax its lending restrictions on small business and community development lending. One change would modify the definition of a real estate loan so that a thrift can recognize part of such a loan as a business loan. Another proposed rule would raise the dollar limit on small business loans to $2 million from $1 million.

It would also raise the limit on farm loans to $2 million from $500,000. OTS also is proposing to increase the aggregate limit thrifts can invest in community development funds, community centers and economic development projects to the greater of 1 percent of total capital or $250,000. Meanwhile, James E. Gilleran was sworn in as the Director of the OTS. Gilleran served as CEO of the Bank of San Francisco from 1994 to 2000 and was superintendent of the California State Banking Department from 1989 to 1994.