“CRE Loan Growth Still Strong but Moderates in July as Analysts Sees More “Rationality” Return to the Market”
“Second quarter bank earnings results and early third quarter lending numbers clearly show U.S.-based banks have tightened their underwriting standards for CRE loans as they face increased scrutiny of their commercial real estate lending from bank examiners.”
‘”Our expectation is that banks will be justifiably cautious with CRE lending over the next quarter or two as the industry adjusts to the increased regulatory scrutiny and peak CRE valuations,” the Morgan Stanley report noted.”‘
“We remain concerned about the near-term outlook for commercial real estate lending given aggressive competition, yet property prices are stable and we are starting to see signs that rationality is creeping back into the market. We see enough signs that lending conservatism may be coming back into the market that we don’t think an outright negative view is warranted.”
Citation and Link to Article & Picture: Heschmeyer, Mark. “US Banks Clearly Tightening CRE Lending Standards.”National Commercial Real Estate News. N.p., 10 Aug. 2016. Web. 10 Aug. 2016. http://www.costar.com/News/Article/US-Banks-Clearly-Tightening-CRE-Lending-Standards/184004