OCC 98-36
Subject: Risk-Based Capital   Servicing Assets
Description: Final Rule
Date: August 11, 1998

TO:  Chief Executive Officers of National Banks, Department and
Division Heads, and all  Examining Personnel

On August 10, 1998, the OCC, the Federal Reserve Board, the
Federal Deposit Insurance Corporation, and the Office of Thrift
Supervision (agencies) published the attached joint final rule. 
The final rule amends the agencies' risk-based capital treatment
of servicing assets, and was effective upon publication. 
Specifically, the regulation increases the amount of servicing
assets (and purchased credit card relationships) that may be
included in regulatory capital from 50 to 100 percent of Tier 1
capital.  Servicing assets subject to the 100 percent Tier 1
capital limitation include mortgage and non-mortgage assets. 
Non-mortgage servicing assets and purchased credit card
relationships are subject to a sublimit of 25 percent of Tier 1
capital.  The final rule continues to subject the fair value of
mortgage servicing assets and purchased credit card relationships
to a 10 percent discount and applies the same discount to non-mortgage servicing assets.  

The final rule makes the agencies' treatment of servicing and
related assets for regulatory capital purposes consistent with
the accounting standards prescribed by the Financial Accounting
Standards Board ("Accounting for Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities" [FAS 125])
for the reporting of servicing assets.

For further information, contact Roger Tufts, senior economic
advisor, Capital Policy Division at (202) 874-5070, or Gene
Green, deputy chief accountant, Office of the Chief Accountant at
(202) 874-4933.


_____________________________________
Emory Wayne Rushton
Senior Deputy Comptroller 
     for Bank Supervision Policy


Attachment   63 FR 42668