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Asset Based Loan

Bernanke – Commercial Real Estate strained

At the May 10th, 2012, 48th Annual Conference on Bank Structure and Competition in Chicago, Illinois, Federal Reserve Chairman Ben Bernanke stated that “Financing conditions in the Commercial Real Estate Sector remain strained as fundamentals, including high vacancy rates, depressed property prices, and the poor quality of existing loans continue to be weak.

The chairman further stated that the market for MBS, a source of liquidity for some lenders in this sector, is still not on solid footing.

There are some signs of easing in the lending standards for Commercial Real Estate.    The Federal Reserve’s Quarterly Senior Officer opinion survey review of Bank Lending Practices indicates an easing for lending standards for Commercial Real Estate Loans.