Senate Banking Committee Chairman Christopher Dodd (D-Conn.) today asked NCUA Chairman Debbie Matz and other regulators for an update on their effort to stabilize the commercial real estate market.
He wrote that the weakness of this market "requires prompt and robust responses from the regulators to guard against harmful effects on financial institutions and the economy." The Federal Financial Institutions Examination Council issued a policy statement on commercial loan workouts last fall.
Dodd noted that delinquency rates on commercial mortgages rose from 4% in September 2009 to 6% last month.
Dodd sent the letter to Matz, Federal Reserve Chairman Ben Bernanke, as well as to the FDIC, the Office of Thrift Supervision and the Office of the Comptroller of the Currency.
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