Does X worth of 1-day-maturity debt really hedge 10X of a 7-year commercial real estate loan?
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Without this facility banks with real estate loan overexposures are lined up for failure on Bank Failure Friday.
Commercial real estate loan defaults did rise along with residential defaults, but the commercial sector never went down enough to throw the financial system into crisis.
Goldman Sachs ( GS - news - people ), hardly known as an unsophisticated lender, has marked its commercial real estate loan portfolio down 30%.
My analysis shows 2, 485 or 32% of all banks overexposed to commercial real estate loans, and 3, 938 or 50.7% of all banks with real estate loan pipelines that are 80% to 100% funded.
"The agencies are concerned that rising commercial real estate loan concentrations may expose institutions to unanticipated earnings and capital volatility in the event of adverse changes in commercial real estate markets, " the regulators wrote in a joint statement.
Bill Watt, a lawyer who now serves as a Little Rock municipal judge, testified that banker David Hale told him two times in 1986 that then-Gov. Bill Clinton urged Hale to complete a real estate loan that is at the center of the government's case.
Smaller banks with mostly residential or commercial real-estate loan books tend to take longer to work their way through problems.
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Her goal: to pay down her mortgage and replace some of the income she lost when a real-estate loan she had made on another property recently went bad.
Zona just inked a deal to be the provider of financial news, real estate listings and loan rates on StarMedia's money page.
In 1790s Georgia the decision by politicians to preserve for the public a 1-million-hectare swath of former Indian territory known as the Yazoo Land Grant spawned a rash of duels between real estate developers, loan sharks and legislators.
In 1790s Georgia the decision by politicians to preserve for the public a 2.5 million-acre swath of former Indian territory known as the Yazoo Land Grant spawned a rash of duels between real estate developers, loan sharks and legislators.
However, now back on its feet, the headlines are that GM wants to buy back GMAC, the auto loan, real estate mortgage, insurance giant, putting it right back into the financial business in a big way.
Government officials in both countries have enormous influence over contracts and procurement, development and infrastructure projects, loan approvals, real estate transactions, land use rights, and preferences in regulated industries.
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Among those charged this afternoon in New York are seven mortgage brokers, three real estate agents, three lawyers and two loan officers.
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Or, it simply means that loan problems have expanded beyond real estate.
"I wouldn't tell a consumer that he can rely on the real estate broker to protect him from an avaricious loan provider, " said Guttentag.
High consumer demand in Brazil, coupled with what the International Monetary Fund said this weekend was excessive loan growth, has prices for real estate and other goods and services on the rise.
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Mr. Sampson also allegedly told the real estate broker not to tell investigators he had made a loan to him.
An appraisal that results in a value that is less than the contract purchase price can potentially mean all kinds of woe for the loan officer (me) and the real estate agent.
Actually, lenders could care less what the property appraises for, it is the loan officer (me) and the real estate agent, Larry who care (a great deal) what the value result is from the appraisal.
"The bank's capacity to generate profit enables us to set aside hefty real estate provisions in Spain in 2012 and significantly increase non-performing loan coverage, " Santander chairman Emilio Botin said.
The loan-to-value ratio of Zions' commercial real estate portfolio is low at 62%.
True, spending on new houses fell sharply again in July, but mortgage rates have been cut by the government's Housing Loan Corporation, and the government is considering reducing real-estate taxes and relaxing regulatory measures such as limits on the height of houses.
If I were to ask you which generation of employees is experiencing the most financial hardship, you might think of the Baby Boomers approaching retirement after a decade of weak stock and real estate markets or the Millennials squeezed between poor job prospects and high student loan payments.
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Stern had never done a commercial real estate deal of anywhere close to that size, but figured the bank would loan him nearly the entire amount.
The venture has amassed the loan portfolio of bankrupt Residential Capital, acquired realty firms like Prudential Real Estate and Real Living Real Estate, and bought out several construction companies like brick maker Jenkins Brick.
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The causes of 1990-91 and 2007-09 were similar: Real estate collapse, stock market turbulence, financial engineering turkeys come home to roost, loan failures, taxes going up, a Middle Eastern war, a spike in oil prices and everybody de-leveraging at once.
Wharton real estate professor Todd Sinai argues that even if the seller's agent offered the buyer objective loan advice, the buyer should be wary.
"This wouldn't have happened two or three years ago, " said Valerie Heller, region manager for commercial real estate in U.S. Bank's Pacific Northwest region, of the Idaho construction loan.
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