Written by Denise Kalette [NREIonline.com January 20, 2011]
The controversial practice of “extend and pretend,” in which regulators grant banks and other lenders wide latitude to extend performing loans while avoiding sharp value write-downs that could otherwise result from marking performing loans to market, is on its way out, according to a new analysis by CB Richard Ellis Econometric Advisors.
But the exit won’t be swift, according to a draft chapter from CBRE’s forthcoming Annual Trends 2011 report. “This process will not end with any fanfare but will fade away as markets recover.” The policy of extending loans whose supporting properties have lost value is a way to nurse an asset back to financial health, the authors report. “Some would argue the patient should be left to pass and the funds tied up in this asset should be used for a new venture to move the economy forward.”
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Chris Shaheen is a graduate of Louisiana State University where he obtained a Bachelor of Science in Business Management. Shaheen obtained the Louisiana Real Estate Sales License in 1995 where he began work as a consultant with Saurage Company Inc. and remains today as a specialist in development, land valuation, and financing with Saurage Rotenberg Commercial Real Estate.
Saurage Rotenberg Commercial Real Estate is a member of the Baton Rouge Area Chamber of Commerce (BRAC); the West Baton Rouge Chamber of Commerce; the Baton Rouge Growth Coalition; the Baton Rouge Better Business Bureau; the Louisiana Commercial Data Base (LACDB); and the International Council of Shopping Centers (ICSC). Several agents, on an individual basis, are members of the Society of Industrial and Office Realtors® (SIOR), the Certified Commercial Investment Member Institute (CCIM); the National Association of REALTORS® (NAR); and the Greater Baton Rouge Association of REALTORS® Commercial Investment Division (CID).