All articles tagged with #risky loans
Originally Published 2 months ago — by NPR
The US economy is experiencing a 'cockroach' problem with the rise of private credit firms, which have grown to a $2 trillion market by offering risky loans, raising concerns reminiscent of the 2008 financial crisis.
Originally Published 2 years ago — by Crain's Detroit Business
Debt funds, a form of unregulated lending, have become increasingly prominent in commercial real estate in recent years, offering short-term loans with higher interest rates than traditional banks. These loans provide quick access to cash for property stabilization, tenant improvements, and new construction, but they come with potential risks and less favorable terms. Debt funds have stepped in as traditional banks slow or halt commercial real estate lending, and they have become a source of concern for regulators due to their lack of oversight. As the interest rate environment changes, borrowers who took out debt fund loans in the past few years may face challenges with refinancing and resizing their loans, leading to potential foreclosures and the need for additional equity.