It was a little more than a year ago when the NCUA threw its support behind an advisory that encouraged workouts on commercial real estate loans.
That policy statement was adopted over the summer and for credit unions, it meant coming up with arrangements that could potentially improve a member's prospects for paying off loans given the sluggish economy.
The directive was just one way the industry had to adjust to the CRE downturn that plagued the business sector nationwide. Many of the forecasts some economists predicted would occur within the real estate sector came to pass in 2010. The start of the year brought with it a looming foreclosure crisis among CRE loans. Nearly 3,000 community banks, which made up 40% of the banking system before a number of them collapsed, had a high level of CRE loans relative to capital, said Elizabeth Warren, the former chairman of the Congressional Oversight Panel created to keep watch on bailouts within the financial services industry.
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