Legacy CRE loan portfolios for some of the largest national and regional banks have stabilized and their loan pipelines are growing with a mix of multifamily, REIT, conduit, investment real estate and owner-occupied deals. Bank executives also told investors this past week that some have begun to actively pursue construction and office property loans.
But as it seems with every aspect of this recovery, it’s an uneven mix, largely reflecting what stage of recovery the individual bank's loan portfolio is in. Some have just cleared up the messes in their portfolios from the Great Recession of 2007; others have already started growing that business - and pretty aggressively too; yet another batch is already starting to pull back as competition for deals has driven down yields and loosened credit standards beyond their comfort zones.
Read more...As CRE Turns Corner, Banks Face Decision On How Hard to Compete for Loans - CoStar Group