GAO Recommends Updated Guidance for Commercial Lending
On May 19, the Government Accountability Office (GAO) recommended updating and clarifying commercial real estate lending guidance that was originally issued in 2006. According to GAO, changes in the commercial lending market since the financial crisis, including increased delinquincies, problems with securitization, and an increased reliance of small banks on CRE loans, have created a need for clearer and more consistent guidance. The call to modernize the guidance comes in the wake of a recent study that found some confusion and inconsistency in the application of the 2006 guidance.
The National Association of REALTORS monitors these kinds of reports for consistency with established NAR policy on commercial real estate lending. We highly encourage you to check out the fine print on your NAR advocacy ‘insurance policy’ and read the NAR Commercial Real Estate Lending Issue Summary that includes all of the legislation and regulation supported and opposed based on that position statement. Watch the NAR Government Affairs Washington Report for the latest breaking news (and there is so much) each week on all commercial real estate issues in DC.
The full GAO report is available at www.gao.gov/new.items/d11489.pdf