Hear news about recent NAR Congressional testimony urging incentives for commercial RE investing such as accelerated depreciation and development of a mortgage insurance program to insure the difference between a property’s™ current value and its debt; plus information about credit union lending as NAR Treasurer James L. Helsel, Jr. provides his latest update.
By Year End — Half Commercial Mortgages Underwater
That’s what Elizabeth Warren, chair of the TARP Congressional Oversight Panel said last Monday. ‘œThese loans are concentrated in the mid-sized banks,’ Warren told CNBC. ‘œWe now have 2,988 banks’”mostly midsized, that have dangerous concentrations in commercial real estate lending. As a result, the economy will face another very serious problem — to be resolved over the next three years… [and] things are unlikely to return to normalcy in 2010.”
For more information, click here
Rep Luetkemeyer (R-MO.), Calls Bank Regulators to Task
Across the USA, banks say there’s a big reason they aren’t lending more: Regulators won’t let them. Even as the White House exhorts banks to open the lending spigots, particularly for small-business borrowers who are key to job growth, banks say government field examiners are toughening their reviews in ways that discourage sound loans. Read the full story – here
Simon Property Likely to Raise Offer for General Growth
Simon Property Group, the largest public U.S. real estate company, is considering raising its $10-billion buyout offer for rival shopping mall owner General Growth Properties Inc. Simon sent a letter to General Growth this week saying it anticipates boosting its offer above that of a proposal put forth by General Growth and three of its largest stakeholders, the people said on condition of anonymity because they were not authorized to discuss the matter publicly. Read more…
