Plan Coming on Commercial Loans
Come to Us for Central Massachusetts Commercial Real Estate
Damian Paletta of the Wall Street Journal has reported in the article below that the Feds are considering a new plan to allow banks to create workouts on commercial loans rather than letting the loans go into default. We realize that this would ulitmately have the potential to cause more bank failures if too many commerecial loan losses accumulate in the bank's portfolio.
As more tenants are renegotiating lease terms with their landlords, the investor's situation is most likely deteriorating potentially causing them to go into loan default. We know that many lenders have been doing workouts on their own initiative. It's good to see the feds working toward a practical solution while the commercial real estate market sorts itself out over the next few years.
"WASHINGTON - Federal bank regulators are close to issuing guidelines that would encourage lenders to rework troubled commercial real-estate loans, a sector of the economy they expect to topple scores of additional financial institutions."
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This article sumitted by Robert Yale, CCIM
contact bobyale@svn.com
Central Massachusetts Commercial Real Estate