Posted on 02/01/2011 6:12:18 PM PST by FromLori
For 2011, 10 of the 11 banks that have closed so far showed bad commercial real estate loans taking the lion's share of the distressed loan book.
In six of those cases, losses on bad construction loans made up more than half of the bank's nonperfoming loans.
According to Trepp Analytics, CRE loans comprised $600 million, or 82% of the $732 million in nonperforming loans.
For the past two years, lenders followed a trend of refinancing the terms of the loan, in a strategy called "extend and pretend."
(Excerpt) Read more at housingwire.com ...
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