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November 2, 2009

New rules for modifying commercial property loans

WASHINGTON (AP) — Banks must accurately identify their potential losses when modifying troubled commercial real estate loans under federal guidelines issued last Friday.

Regulators have warned that rising losses on commercial real estate loans pose risks for U.S. banks, with small and mid-size banks especially vulnerable. Nearly $500 billion in commercial real estate loans are expected to come due annually over the next few years.


 
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