Which of the following accurately describes the other real estate owned that appears as an asset on the bank's balance sheet?
A) usually represents property obtained through foreclosure on problem loans
B) includes premises and equipment
C) is limited to the equipment owned by the bank
D) includes only the land owned by the bank.

Question

Quizplus · Accepted Answer

Other Real Estate Owned (OREO) typically represents properties that a bank has acquired through foreclosure, usually as a result of borrowers failing to make their loan payments. These are not the premises and equipment used in the bank's operations, nor are they limited to just equipment or land owned by the bank.

Which of the Following Accurately Describes the Other Real Estate