Nov 13, 2009

U.S. Federal Banking Agencies Issue a Policy Statement on Commercial Real Estate Loan Workouts

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There is a projected $400 billion of commercial real estate (CRE) mortgage loans per year maturing over the next three years in the United States, a majority of which is held by banks. Moreover, according to estimates, greater than $500 billion of bank CRE loans maturing between now and 2014 are underwater. These figures, coupled with a general lack of available financing for CRE borrowers, foretell very large numbers of CRE borrowers that will be unable to meet loan repayment terms. Given these conditions, loan workout policies, practices and controls of banks have become, and are expected to remain, an important area of supervisory focus.

Read the full memo, “U.S. Federal Banking Agencies Issue a Policy Statement on Commercial Real Estate Loan Workouts.”

Autoren und Mitwirkende

Lisa M. Brill

Partner

Real Estate

+1 212 848 4571

+1 212 848 4571

New York

Malcolm K. Montgomery

Partner

Real Estate

+1 212 848 7587

+1 212 848 7587

New York

John L. Opar

Partner

Real Estate

+1 212 848 7697

+1 212 848 7697

New York

Barnabas Reynolds

Partner

Financial Institutions Advisory & Financial Regulatory

+44 20 7655 5528

+44 20 7655 5528

London