Though fears linger that regulators are letting banks kick problems down the road, most observers say guidelines released last week that outline ways to modify commercial real estate loans gave banks much-needed clarity for handling troubled credits and would ultimately prove beneficial.

The guidelines included measures to help lenders determine more precisely how much the value of the collateral on their loans had changed, without necessarily requiring them to record partial chargeoffs if they had dropped.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.