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Why Banks Are Still Not Lending – Winston Rowe & Associates
The White House, U.S. Treasury and the Federal Reserve have dramatically tried to stimulate bankers to start lending on U.S. commercial real estate. 248-246-2243.
Winston Rowe & Associates a no upfront fee commercial real estate financing advisory firm that is filling the gap for commercial real estate investors (CRE) nationwide.
Through their steadfast relationships Winston Rowe & Associates is providing comprehensive fast financing solutions for hospitality, retail, office buildings, medical and industrial properties.
They have prepared this article to provide some insight into why banks are not lending and to explore why many bankers seem unwilling to perform what is a crucial service to restarting the U.S. economy.
If you would like additional information about Winston Rowe & Associates they can be contacted at 248-246-2243 or visit them online at http://www.winstonrowe.com
The White House, U.S. Treasury and the Federal Reserve have dramatically tried to stimulate bankers to start lending on U.S. commercial real estate. Yet most bankers have been reluctant to do so, even though many real property owners desperately need financial aid.
The cause is that bank balance sheets are already overloaded with all types of real estate loans. Real estate lending, including housing, represented around 40% of all U.S. lending from 1996 through 2001. As a result of the stock market crash of 2000, that share shot upward as many investors moved from stocks into real estate.
The total share of property-based loans held by banks jumped from 39.3% in 2001 to 56.3% in 2002, according to the FDIC. That share steadily rose to a peak of 62.8% in 2006. After home prices began to decline, that figure leveled off at 60% in both 2008 and 2009.
Since relationship lending is now in vogue again, many bankers are willing to make real estate loans to longtime customers who remain financially stable. New customers will have a tougher time securing financing.
This is where Winston Rowe & Associates bridges the gap for clients that can’t obtain financing from traditional retail banks. They have a core focus on building long-term relationships with new clients, delivering exceptional and individualized customer service, and positioning loan products that best achieve their client’s goals. Their preemptive problem-solving approach is perfect for clients with credit and time sensitive issues.
Banks also hold complex collateralized debt obligations (CDOs) and other toxic assets that have greatly shrunk in value. Bankers hope such holdings will recover as the economy improves. But there are almost no current markets for those holdings. If bankers sell those assets now, they will take large capital write-offs and may become insolvent.
To prevent that outcome, the government is allowing banks not to mark such holdings to current market values, if there is any hope of future value recovery. But postponing sales means banks have less cash to make loans right now.
Winston Rowe & Associates capital groups do not have this problem and are poised to take advantage of the current market conditions to aggressively grow market share.
They have the experience and a deep understanding of complex commercial real estate transactions for the various vertical markets. This has helped Winston Rowe & Associates become one of the nation’s most trusted sources for CRE acquisition, refinance, construction and bridge loan solutions nationwide.
They also have an excellent knowledge based resource for valuation and market analysis located at:
Winston Rowe & Associates
31408 Harper Ave
Saint Clair Shores MI 48082
Winston Rowe & Associates has no upfront free commercial loans in the following states.
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin, Wyoming