In this interesting Blog Post by Mike Larson, he discusses The real estate crash that began in 2006 is one of the most painful economic crises this nation has ever faced. “Housing collapsed first, followed by commercial real estate — and the financial system was pushed to the brink of a full-scale meltdown.” Larson stated. “We’re also going to see additional, potentially very hefty losses among banks with too much exposure to CRE. That will put additional stress on a sector that’s already struggling, not to mention the markets as a whole. Regulators are so worried, they warned the entire banking industry in December to back off and take steps to insulate themselves from future losses.”
To read more about Mike’s findings, click here to read Risk Management for CRE Lending.