The Real Estate Roundtable has requested federal bank regulators to reestablish a troubled debt restructuring (TDR) program for commercial real estate that would give financial institutions increased flexibility to refinance loans with borrowers and lenders. This request comes in light of numerous financial stressors such as rising interest rates, a steady increase in looming debt maturities, remote work’s negative influence on office space demand and heightened uncertainty from the recent bank turmoil that have exerted pressure on liquidity and decreased refinancing options for CRE assets.
Jeffrey DeBoer, President & CEO of The Real Estate Roundtable stated “Regulators have taken significant action four times since 2009 to assist commercial real estate loan modifications during periods of economic instability—and now is the time to take action again. Our request is for immediate action given increasing credit and liquidity constraints; allowing markets still struggling with post pandemic uncertainties time to stabilize.”
