Last week, the Federal Reserve's Senior Loan Officer Opinion Survey on bank lending practices was released, and for the sixth consecutive quarter, banks have tightened the lending on commercial real estate.
Reasons for the continual tightening vary, but are mostly good as it relates to commercial real estate, according to John Chang, Director Research, Client Services, Marcus & Millichap, speaking on a recent news video by the firm.
"One would think it would be tied to delinquency rates," Chang said. "If lots of borrowers are late on their payments, it would make sense for banks to tighten their lending standards. We saw that during the global financial crisis."
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