Risk Management for CRE Lending

As community institutions push for increases in CRE lending in an attempt to obtain higher yields, the risk management practices associated with a CRE portfolio come into focus. The institution’s management and Board have to manage the risks associated with a CRE portfolio and maintain adequate capital levels given the CRE concentration risk. The regulators have witnessed an easing of CRE underwriting standards and have issued FIL-62-2015 to ensure that institutions maintain proper underwriting standards and prudent risk management in relation to CRE portfolios.

For more information, please see the full FIL at https://www.fdic.gov/news/news/financial/2015/fil15062.html and for more information or assistance please contact James Dowling, Manager, and member of Marcum’s Financial Institutions Industry Group.