Office of Thrift Supervision Director John Reich broke ranks with his fellow regulators Sept. 14 over proposed guidance on commercial real estate lending and warned at a congressional hearing that banks and thrifts might view the concentration thresholds as caps and limit their CRE lending.The OTS director testified that he supports issuing guidance to raise awareness that high concentrations of CRE loans need to be effectively managed, but not with the threshold numbers. "I do have a concern that they will view them as limits and caps," Mr. Reich said. Multifamily and commercial property loans (plus land, development, and construction loans) that exceed 300% of equity capital would be considered a high concentration under the proposed guidance. Residential and commercial ADC loans that exceed 100% of equity capital would also be considered a high concentration. The OTS director told the panel that it is "inappropriate" to lump multifamily loans with shopping mall and office building loans in determining high concentrations of CRE loans. FDIC Chairman Sheila Bair testified that the guidance will emphasize that the "stated thresholds are not limits" and will recognize that different property types have different risk characteristics.
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The lender recorded a $59 million net loss in the fourth quarter, an 83% improvement from its third quarter performance.
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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.
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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.
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Mortgage payments rose 10% year-over-year to an all-time high for March, Redfin said.
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