Federal regulators want banks and thrifts with high concentrations of commercial real estate loans to use "heightened" risk management practices and to recognize the need for additional capital, according to newly issued regulatory guidance.Regulatory officials have been warning about small and midsize institutions that have steadily expanded their CRE portfolios over the past few years. However, America's Community Bankers is concerned that the guidance will "inhibit" CRE lending and force institutions to maintain higher capital levels. The guidance establishes thresholds for determining when a lender has a high concentration. Concentrations of land acquisition, development, and construction (including one- to four-family construction) loans that represent 100% of capital are considered high and warrant heightened risk management practices. ADC loans, along with multifamily and commercial property loans, that amount to 300% of capital are considered a high concentration, according to the guidance, which is being issued for a 60-day comment period. Federal Deposit Insurance Corp. data show that 35% of federally insured banks and thrifts have CRE exposures that exceed 400% of capital. The regulators decided to exclude CRE loans secured by owner-occupied properties from the threshold test "because their risk profiles are less influenced by the condition of the general CRE market."
-
New guidelines regarding buy-side and sell-side real estate agent compensation are set to go into effect this summer.
55m ago -
Affordability challenges also have some aspiring homeowners taking second jobs or looking to draw from retirement savings, according to Redfin.
1h 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 -
The pending end of the program comes as over half of U.S. states have already ceased accepting new applicants for federal aid aimed to help struggling households with mortgage payments.
March 28