The federal banking regulators' proposal to establish concentration thresholds for commercial real estate lending is "flawed" and should be abandoned, according to the Independent Community Bankers of America."We urge the regulators to abandon the proposed concentration thresholds and look at an institution's credit risk and risk management practices on a case-by-case basis," the ICBA says in the comment letter on the proposed CRE guidance. The ICBA and the American Bankers Association also raise the concerns that the thresholds, which can trigger additional capital and risk management requirements, could end up curtailing CRE lending. "As CRE lending has been one of the few remaining major profit lines for community banks, they are deeply concerned about the negative impact of this guidance on them and, consequently, on the their communities," the ABA says. Meanwhile, the Mortgage Bankers Association said the burden should be on examiners, not the thresholds, to prove that additional capital or "heightened risk management practices" are necessary. "We recommend that the agencies develop a definition and guidelines that will avoid the inconsistent application of heightened risk management practices," the MBA says.
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The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
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The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
April 24 -
Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
April 24 -
A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
April 24 -
The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
April 24 -
The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
April 24