NIC INSIGHTer: Bank Regulation on CRE Loans
Sarah Duggan,Executive Director, Wholesale Banking, Seniors Housing and Healthcare Lending, Synovus Bank
“Bank regulators have increased their scrutiny on CRE loans due to continued uncertainty in the economy and higher interest rates. Regulators have focused more on loans with the following characteristics: maturities within 12-18 months; repricing/refinancing risk; potential declining valuations and guarantor dependency to meet contractual payment obligations.”
Morgin Morris , Senior Mortgage Banker, KeyBank Real Estate Capital
“Key has been proactive in preparing for the pending regulatory changes, specifically around proposed increases to capital requirements. Every bank has a different set of variables, but I am excited about our ability to contribute to the sector in 2024.”