Banks continued to ease standards on commercial, mortgage and personal loan products amid mixed demand, according to the Federal Reserve’s senior loan officer opinion survey released today.
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Five key factors for risk managers and C-suites in the year ahead.
While the total amount of commercial real estate loans held by banks has grown, individual institutions’ holdings of CRE loans relative to capital levels have remained below peaks observed during the last recession, the FDIC said in the latest edition of FDIC Quarterly.
While banks continued to remain in a posture of easing standards on commercial, mortgage and personal loan products, the easing trend slowed in the third quarter from the prior two quarters, according to the Federal Reserve’s senior loan officer opinion survey released today.
Testifying before the Senate Banking Committee today, Acting Comptroller of the Currency Michael Hsu said that the OCC has aggressive internal timelines for working with the Federal Reserve and FDIC to put forward a joint rulemaking that strengthens and modernizes the Community Reinvestment Act.
As the small business recovery took off in the second quarter, a substantially larger share of banks reported easing standards for business loans, continuing the easing trend seen in the first quarter of 2021, according to the senior loan officer opinion survey released by the Federal Reserve today.
With post-pandemic effects hindering many traditional CRE markets, developers are turning to multifamily housing to meet demand.
The FDIC proposed changes to its guidelines for real estate lending policies in order to align standards with the community bank leverage ratio, which does not require electing institutions to calculate tier 2 capital or total capital.
With projected economic growth expected to create a positive environment for bank performance in the remainder of 2021 and 2022, according to the OCC’s newly released Semiannual Risk Perspective, newly appointed Acting Comptroller Michael Hsu today said “it’s critical that bankers and their regulators guard against complacency.”
Rising home prices in many U.S. markets appear to have pushed up demand for—and banks’ offering of—jumbo mortgage loans, according to the Federal Reserve’s senior loan officer survey released today.