Loan Modification Guidelines Planned

October 25, 2009
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U.S. bank regulators plan to issue guidelines to help lending institutions modify commercial real-estate loan agreements, which they say are a huge risk to lenders. In remarks to the Senate Banking Committee, leaders of the Federal Deposit Insurance Corp. (FDIC), Office of the Comptroller of the Currency, and Office of Thrift Supervision blamed the reduced demand for space that has led to falling rental rates, saying that it adds to losses on the loans.

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