US Comptroller Flags CRE Lending

More than 400 US banks saw CRE loan portfolios grow more than 50% over the past three years, said Curry.

WASHINGTON, DC—Following on an interagency statement this past December that raised concerns about rising concentrations and looser underwriting standards for commercial real estate loans, the US Comptroller of the Currency said this week that he’s keeping a closer eye on CRE lending. Comptroller Thomas Curry delivered his comments in connection with the Office of the Comptroller of the Currency’s release of its Semiannual Risk Perspective for Spring 2016 on Monday.

In prepared remarks, Curry cited real estate lending, along with commercial and industrial loans, as a year-over-year growth driver for the federally chartered banking sector. He said that as this stage of the cycle, we’re seeing “strong loan growth combined with easing underwriting to result in increased credit risk. While leveraged lending and auto lending remain concerns, CRE lending and concentration risk management has become an area of emphasis for regulators.”