$90 billion of commercial mortgages are reaching maturity and are exposing weakness in the U.S real estate market. Lenders are more particular about the properties they are willing to lend to now compared to pre-recession times. Overheated prices for properties, rising interest rates, and rising regulatory constrains for banks are the contributing factors for the lending pullback. Therefore, many properties with maturing mortgages will find it very difficult to refinance, leading to large losses in the market.
Four Lending Sectors That Provide 86% Of All Commercial Real Estate Debt 1. LIFE INSURANCE COMPANIES - Hold 14% Of All CRE Debt There are approximately 35 active life insurance companies offering first mortgage debt to the commercial real estate industry. In general this lending sector targets those commercial loans secured by the newest properties…Read more