Opinion: How a Lack of CRE Standardization is Threatening Bank Valuations
National Mortgage News, July 5, 2021–David Brooks (subscription)
Standardization in the residential mortgage market has become highly efficient and a growing source of supply for asset growth that investors are seeking, including banks. Unfortunately, things are quite different on the commercial real estate side of a bank’s lending business. There has been no similar stabilizing force in the CRE mortgage business, a gap that is now creating one of the most significant threats the lending industry faces.