The Federal Reserve's Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) regularly checks with banks to better understand their lending landscape. The short take for commercial real estate from the most recent survey is that even tighter underwriting standards can be expected in the future.
And while easing interest rates are eventually expected to support relatively low demand from borrowers, that is unlikely to happen until May or June.
"Over the fourth quarter, significant net shares of banks reported tightening standards for all types of CRE loans," the report noted. "Such tightening was more widely reported by other banks [or those with less than $50 billion in assets] than by large banks." Tightening standards particularly by the "other banks" category were also true for multifamily loans.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
