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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (75026)	12/9/2006 12:30:16 PM
From: Ramsey Su	Respond to of 110194

The significance of this is lost due to the terminology. I have repeatedly posted that CRE, commercial real estate loans, are NOT loans secured by commercial real estate as it is commonly believed. Most of those are C&I loans. CRE are real estate loans of a commercial nature. Right now they are mainly construction loans, condo conversion loans, bridge loans etc. The security of these loans were usually dependent on a very low LTV. However, the question now is if this LTV is low enough, as projects may be failing and prices coming down rather rapidly. These guidelines may be a little late, since there are probably not much demand of these loans today. However, even if the loans on the books are OK, how about the lenders such as CORUS and Fremont going to find new originations to replace the old loans?