CRE loan selloffs will occur, but will not be drastic, says Citymark’s Daniel Walsh
The coming months will see refinancing stress in the loan market, but not to an overwhelming degree, according to Daniel Walsh, CEO of Citymark Capital, an Ohio-based apartment investor.
In a recent interview on CNBC’s Squawk Box, Walsh commented on the state of nonperforming loans for banks and borrowers, saying, “I don’t think banks are going to be in a position or [will] want to sell big blocks of loans into the market. I think, again, because they’ve been disciplined, there are loans that are going to have refinance shortfalls, with borrowers who will not be able to repay those loans. The loans will get downgraded, and the more capital that gets put against those loans makes them unprofitable, so it becomes kind of a clinical decision for banks to go ahead and sell those loans into the market.”
Banks won’t “dump [those loans] into the market,” he added, addressing the manner in which Silicon