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The Market Ticker: You Can't Possibly Be Serious (CRE)
Rolfe Winkler: Bank regulators extend and pretend
Trading Goddess: October Overview - When the Goblins Come Home to Roost
Reactions
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@tickerville http://bit.ly/2BAeeE RT @zippertheory @toddsullivan banks get new rules on property http://bit.ly/4by8y5 h/t @niubi 11/1/2009 |
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RT @optionmonster: Why Geithner said we'll "manage through" a CRE bust. at the gift given to banks! http://tinyurl.com/yjc27ah (via @atask) 10/31/2009 |
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Here's why Geithner said we'll "manage through" a CRE bust. at the gift given to banks! http://tinyurl.com/yjc27ah (via @atask) 10/31/2009 |
You Can't Possibly Be Serious (CRE)
The Market Ticker —
... I am speaking of the notion that went up the flagpole on allowing banks to refinance commercial real estate loans at more than 100% LTV - and having this "overlooked" by regulators.
Oh, but they are!
Regulators, in a significant step, also said they won't penalize banks for performing loans where the value of the underlying property is now worth less than the loan balance.
Who did this?
The guidelines, released on Friday by ...
Bank regulators extend and pretend
Rolfe Winkler —
From Lingling Wei at WSJ:
Federal bank regulators issued guidelines allowing banks to keep loans on their books as “performing” even if the value of the underlying properties have fallen below the loan amount.
The volume of troubled commercial real-estate loans is skyrocketing. Regulators said that the rules were designed to encourage banks to restructure problem commercial mortgages with borrowers rather than foreclose on them. But the move has prompted criticism that regulators are simply prolonging the financial crisis by not forcing ...
October Overview - When the Goblins Come Home to Roost
Trading Goddess —
... With $770B of the $1.4T in commercial mortgages maturing in the next five years currently underwater, FDIC ...
Commercial real estate - work it out!
FT Alphaville —
... their debts according to reasonable modified terms will not be subject to adverse classification solely because the value of the underlying collateral has declined to an amount that is less than the loan balance. Which means banks will not have to classify restructured loans (to the Troubled Debt Restructured [TDR] or `substandard’, `doubtful’, etc. categories) if the value of the underlying property has fallen to less than the loan balance. The idea, as the Wall Street Journal notes , is to target loans that are coming due but perhaps can’t be refinanced because the value of ...
CRE and the CRA
Paul Krugman —
Zombies, zombies, everywhere. One of the enduring myths of the financial crisis has been the claim that it was the result of (a) Fannie and Freddie (b) the Community Reinvestment Act, which forced poor, helpless bankers to make loans to you-know-who. It’s a myth that won’t go away — I get asked about it almost every time I give a public lecture — even though it has been extensively debunked. (See, e.g., here ...
The impact mounting commercial real estate defaults
Millionaire Now! —
Home sales contracts rise for 8th straight month - The number of signed sales contracts to buy homes rose in September for the eighth straight month. The September ...
New Rules and More Lies Hide Cancerous Commercial Real Estate Loans
Mish's Global Economic Trend Analysis —
Commercial real estate is blowing up so what do regulators do? The answer of course is to come up with new rules and regulations that will allow banks to ignore losses. On October 31 the Wall Street Journal reported Banks Get New Rules on Property. Federal bank regulators issued guidelines allowing banks to keep loans on their books as "performing" even if the value of the underlying properties have fallen below the loan amount. The guidelines, released on Friday by agencies including the Federal Deposit Insurance Corp., the Federal Reserve and the Office of the Comptroller of the Currency, provide guidance for bank examiners and financial ...
Commercial Real-Estate Crisis Squabble
The Powell Perspective —
For the past few weeks, financial news has been mixed on commercial real estate. On the one side, fear mongers like Randall Zisler expect crisis in the next few years. The meat of their argument is that high default rates and high unemployment will keep the market depressed. On the other side, high profile investors like Sam Zell say that the crisis ...
