Regional banks are trying to unload commercial real estate loans as a new banking crisis is unfolding. Regional banks are attempting to minimize their risks as another crisis seems to be unraveling right now.
After the collapse of banks like Silicon Valley Bank and Signature Bank, many regional banks are trying to sell off their commercial real estate (CRE) loans, even if they have to do it at a loss, in hopes of avoiding a similar fate.
Wells Fargo is one such bank. It announced it would be downsizing its CRE portfolio and taking losses, while PacWest sold $2.6 billion in construction loans at a loss last month. Citizens Bank has put $1.8 billion worth of CRE loans for sale in recent months, while Customers Bancorp has placed $16 million of its current CRE portfolio for sale.
The stress seen in the commercial real estate sector right now is weighing heavily on banks and regulators alike, and it’s regional banks that are the most vulnerable. A Bank of America report shows that 68 percent of commercial real estate loans are currently held by regional banks. Moreover, estimates by JPMorgan Chase indicate that these types of loans account for an average of 28.7 percent of regional and smaller banks’ assets and that 21 percent of commercial real estate loans are likely to default, which could cost banks roughly $38 billion in losses, according to a report by Natural News.
Commercial mortgages are currently facing multiple threats. Rising interest rates are making it costlier for borrowers to refinance while dwindling demand for office space as more people work remotely is causing credit concerns for landlords.
Additionally, the commercial real estate loans that originated ten years ago and are now coming due could put borrowers in a very unfavorable position. The average mortgage rates when these loans originated were 4.58 percent; they are now around 6.5 percent.
Delinquencies on commercial mortgage loans are already rising, with missed payments on commercial mortgage-backed securities jumping half a percent in May over April to hit 3.62 percent. The problem was particularly pronounced in offices.
A new crisis appears to be unfolding right now as the ruling class prepares by making manmade laws that control the use of money.
Article cross-posted from SHTF Plan.
At Last, a Company With Integrity in the Gold IRA Industry
For several years, I’ve been vetting out precious metals companies in search of the best. I believe in gold and silver but it’s hard to find integrity in the Gold IRA industry. The vast majority operate with shady tactics and gigantic spreads that take advantage of Americans who simply want to protect their life’s savings.
I’ve found a handful that I like and I’ve worked with some of them. By no means would I “unrecommend” them because, again, I vetted them out and found them to be above the fold. Unfortunately, it isn’t hard to be better than the rest when the rest are so darn awful.
After years of searching, I finally found a company that truly operates with integrity. Augusta Precious Metals has three important attributes that set them far above the competition:
- Non-Commissioned Sales Team: I cannot stress how important and unique this is. With just about every other company in the Gold IRA industry, the sales teams make commission from every account they open. This means they steer their clients toward the gold and silver products with the highest commission. With Augusta Precious Metals, the team is solely focused on putting the best gold and silver for their clients into their IRA. They get paid to serve the best interests of the Gold IRA client, NOT their own commission pay.
- Incredibly Low Fees: Most Americans would be shocked if they knew the spread other Gold IRA companies charge. Augusta charges just 5% versus up to 45% elsewhere.
- No Pressure, No Gimmicks: There’s an understanding among most in the Gold IRA industry that fear and pressure is the way to go. Augusta Precious Metals takes a sober approach when working with clients because they hold integrity in the highest possible regard. This is why they don’t offer gimmicks like “free” or “bonus” silver. It’s also why they do not apply pressure tactics to get quick sales. Their educational and transparent approach to doing business is exceedingly rare in the Gold IRA industry.
Reach out to Augusta Precious Metals to learn more about protecting your wealth and retirement with physical precious metals.
