Commercial Real Estate Loans
2011 Bank Failures on Track to Reach 100 (Mortgage News Daily)
Posted To: MND NewsWire
Commercial real estate loans were the principal cause of the five bank
failures reported in November according to Trepp’s November 2011 U.S. Bank
Failure Report. These loans comprised 80.8 percent of the $160 million in non-
performing loans that caused the bank failures in Georgia, Louisiana, Iowa,
Nebraska, and Utah. The majority of the commercial real estate loans (64.4
percent of the total) were land and construction loans, the remaining 16.5
percent were commercial mortgages. Delinquent residential real estate loans
were the secondary cause of distress, representing 10.1 percent of the
portfolios at the failed banks; of the remainder 5.4 percent were commercial
and industrial loans and other loans comprised 3.7 percent. In what Trepp
called a pattern, the five failures in November followed…(read more)
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Commercial Real Estate Loans