“This action will allow federal banking regulatory agencies to differentiate the disparate risks posed by residential versus commercial lending activities,” said NAHB President David Pressly, a home builder from Statesville, N.C. “Providing data on one-to-four family residential construction is an important step in developing a secondary market for single-family housing production.”
As a result of the regulatory changes, large banks and banks with a high volume of residential production loans on their books will be required to break out their one-to-four family housing production data in their quarterly Bank Call Report effective on March 31, 2007. All other banks will begin reporting the breakdown of their construction loans as of March 31, 2008. “The bottom line is that more residential-specific data will be reported on loan volume and loan performance, which will invite market analysts and investors to treat housing production loans more favorably. This information will help build a secondary market for construction financing,” said Pressly.
or visit http://www.BestHomes-NJ.com for the latest New Jersey Real Estate property listings (residential, commercial, multi-family, farm, land)
Copyright 2006 by Timon, Inc. All Rights Reserved.