The four federal banking regulators have called on the nation’s financial institutions to “work prudently and constructively” with credit-worthy clients that are dealing with pressure related to the commercial real estate market.
The statement from the Federal Reserve, Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency, and National Credit Union Administration updated guidance on workouts that the regulators issued in 2009. The new 90-page guidance focused on short-term loan accommodations including agreements to defer one or more payments, make partial payments or provide other forms of assistance.
Reuters noted that banks represent 54% of the overall $5.7 trillion commercial real estate market, with small lenders accounting for 70% of that market’s loans. More than $1.4 trillion in commercial real estate loans are slated to mature by 2027, with roughly $270 billion coming due during this year.
;
