SF Fed Real Estate Lending Update

The 12th District of the FED has put out a real estate lending update. On the commercial side, some interesting stats:

• Construction and Land Development Loans noncurrent past 90 days amount to 12% in this district’s banks
• “The CMM model suggests rising loss rates over the next several years for longer-maturing loans, but also predicts loss rates should remain relatively moderate. Refinance risk of maturing CRE loans, on the other hand, remains high. Unless the economy and credit markets recover more quickly than expected, CRE credit losses on some of these loans could become significant.”

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