OTS rescinds capital requirement at H&R Block

The requirement was repealed after H&R Block completed the sale of its mortgage servicing business, which operated under its Option One Mortgage unit. The sale, coupled with deleveraging at H&R Block reduced the company's risk profile, enabling the OTS to lift the requirement.

The capital requirement had also prevented H&R Block from repurchasing stock until it met the 3 percent rule.

The OTS typically requires financial firms it regulates to hold a 1.5 percent tangible capital reserves. The tangible capital ratio measures tangible capital compared to a company's total assets.