As troubled CRE loans begin to skyrocket, new guidelines from federal regulators will let banks...

|By:, SA News Editor

As troubled CRE loans begin to skyrocket, new guidelines from federal regulators will let banks keep loans on their books as "performing" even if they're underwater - describing about $770B of the $1.4T of commercial mortgages maturing in the next five years. The rules aim at loans that are being serviced but can't be refinanced, and essentially sanction the practice of "extending and pretending."