Federal regulators have noticed a "modest uptick" in noncurrent construction and development loans, and banks with rapidly growing C&D portfolios need to be careful, according to Sheila Bair, chairman of the Federal Deposit Insurance Corp..C&D lending at banks has been growing at a 30% annual rate over the past two years and regulators generally expect to see "more significant problems" arise as housing markets soften, she told a California Bank Presidents meeting. However, the recently issued commercial real estate guidance should not be "interpreted as supporting a reduction in current volume," Ms. Bair said, so long as loans are prudently underwritten and risk management practices keep up with increasing concentrations. "But we also do not intend to back away from the expectations we have always placed on institutions with rapid growth and high concentrations in this sometimes-volatile line of business," the FDIC chairman said. "To the extent that an institution is already following best practice in this regard, it has nothing to worry about."
-
Higher costs than expected, not just for the mortgage but for repairs and more, have recent buyers' regretting their purchase, Clever RE and Redfin found in separate reports.
36m ago -
New guidelines regarding buy-side and sell-side real estate agent compensation are set to go into effect this summer.
1h ago -
Affordability challenges also have some aspiring homeowners taking second jobs or looking to draw from retirement savings, according to Redfin.
2h ago -
The lender recorded a $59 million net loss in the fourth quarter, an 83% improvement from its third quarter performance.
March 28 -
Initial analyses of Home Mortgage Disclosure Act data show UWM ahead in 2023 loan numbers and dollar volume, but Rocket's market share still looks competitive.
March 28 -
Last year, the Raleigh, N.C.-based Integrated called off a deal to sell itself to MVB Financial after bank stocks took a hit in the aftermath of the regional bank failures. Capital hopes to expand its government-guaranteed lending with the transaction.
March 28