Many large and mid-sized regional banks with elevated exposure to home-equity loans and second liens could be facing big chargeoffs in the third-quarter following those already taken by Citigroup (NYSE: C), JPMorgan Chase (JPM) and Wells Fargo (WFC).

The Office of the Comptroller of the Currency ordered banks in June to adhere to new guidance regarding the treatment of mortgage loans where the borrower has gone through a Chapter 7 bankruptcy. Even if the loans are still performing — and bankers say most are — the OCC is requiring banks to move the loans to nonaccrual status because they pose a higher risk of default.

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