Chris Dodd Demands Commercial Loan Modifications
Below is a letter written by Chris Dodd the top Democrat on the Senate Banking Committee to Ben Bernanke asking him to recommend that banks begin to modify more commercial loans. Will they listen?
February 22, 2010
Ben S. Bernanke
Chairman
Board of the Governors of the Federal Reserve System
20th Street and Constitution [...]
Commercial loan modification can provide a welcome relief to commercial property owners who are behind on their commercial mortgage payments or have seen a drastic decrease in their property values because of a hardship such as increased vacancies. Commercial loan modifications offer the commercial property owner the ability to keep their property, increase their cash [...]
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Nearly $73 billion worth of commercial real estate loans are in some level of financial distress
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Credit Markets Remain Frozen
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Slashing Rents, Incentive offerings, Demanding Concessions
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Empty storefronts, Office buildings and Warehouse Space.
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The losses from commercial real estate loans could hit $53 billion, or 8.5 percent of their overall loan losses [...]
