Real Estate Roundtable Asks Feds to Implement Troubled Debt Restructuring for CRE

The Real Estate Roundtable has requested federal bank regulators to reestablish immediately a troubled debt restructuring (TDR) program for commercial real estate that would give financial institutions increased flexibility to refinance loans with borrowers and lenders.  

The letter from Real Estate Roundtable president and CEO Jeffrey DeBoer cited numerous financial stressors: rising interest rates, a steady increase in looming debt maturities, remote work’s negative influence on office space demand and heightened uncertainty from the recent bank turmoil as contributing factors that have exerted pressure on liquidity and decreased refinancing options for CRE assets.  

DeBoer added, “Regulators have taken significant action four times since 2009 to assist commercial real estate loan modifications during periods of economic instability—and now is the time to take action again. Our request is for immediate action, given increasing credit and liquidity constraints. Time will allow markets still struggling with post pandemic uncertainties to stabilize.”

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