REALTOR® Magazine-Daily News-Many Small Banks Wary of Lending

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Daily Real Estate News | June 9, 2010 | Many Small Banks Wary of Lending
Smaller banks used to be a great source for home buyers and those looking to refinance their loan into a better deal, but with more small and regional banks facing financial problems, this resource is disappearing.

More than 700 banks are on the FDIC’s confidential “troubled bank” list, up from 50 troubled banks a few years ago.

John Dugan, U.S. Treasury’s comptroller of the currency, says that the banks that are in trouble have similar issues -- excessive concentrations in commercial real estate lending, especially construction and development lending. Smaller banks held about half of the defaulting commercial real estate loans.

Source: HousingWatch.com, Bendix Anderson (06/08/2010)