We shared with you in June that we were diligently working on the release of a significant redesign and development of our BankProspector application, a version 2.0 if you will, and to keep our members and fans updated on that progress, here’s an update on the situation.
We are continuing to work towards the launch and roll out of BankProspector version 2.0, admittedly, taking the new application live has taken longer than we had first anticipated. The most notable reason for the delay is a portion of our development team, located offshore, has experienced two (2) natural disasters (yes, there were actually two), stalling communication and progress intermittently.
We’re back on track now, we’ve established a clear timeline to deliver on the exciting changes we’ve had in store, and we can sense that the excitement is building in the market, from the emails and different requests that we receive daily about the launch and the unique features and functionality that we are putting in place.
We’re targeting early August 2010 to begin rolling out BankProspector version 2.0 to our current members and early adopter list. Stay connected with us and get notified about updates as they become available. Thank you for your patience and support during this process, and we look forward to sharing version 2.0 with you soon!
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Q1 2010 CRE OREO and Non-Performing Loans
Commercial real estate problems at US banks soared by 10.6% in the first quarter of 2010 over Q4 2009.
Commercial real estate loans being reported as 30-89 days late increased 16.3% indicating that the trouble in the commercial real estate sector is increasing rather than abating. Reports for 90 Day Late Loans but still accruing increased by 8.5%. Non-accrual commercial real estate loans, a loans last stop on the way to foreclosure, increased 8.9% Commercial OREO balances, commercial real estate acquired by a bank through the foreclosure process increased 14.1%.
The pace at which banks took back commercial real estate through foreclosure kept pace with the prior quarter with REO accounting for about 12.7% of the total pot in Q4 2009 and about 13.1% in the most recent report.
Overall (late, non performing loans, and REO) commercial real estate problems at US banks marched up 11% from $62.2B to $69.1B from Q4 2009 to Q1 2010.The pace of trouble was up with a total increase of 11.03% over the previous quarterly change which was 10.88% which was a slower pace than the 14.6% from the prior quarter.
The 50 Banks with the Top Commercial Real Estate REO Balances made up 40% of all commercial REO held at US banks while the top 50 banks with commercial non-accrual own 45% of those problems.
While the pace of problem loans and REO remains more or less the same the balances continue to grow. This growth in troubled balances shows a failure to act on the part of lenders struggling to workout their CRE loans and avoid write-downs.
With pressure continuing to build it seems highly likely that the commercial real estate market will have to see more distressed deals hitting the market.
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Top 50 US Banks CRE REO Report
You may have noticed that we are currently closed to new subscribers – we’ve received more than a few emails asking what’s going on, so here’s the scoop.
Next week (fingers crossed) we’ll begin to roll out BankProspector 2.0. This is not a minor upgrade to the existing system, this is a ground up rebuild. We’re currently behind schedule partially due to unforeseen circumstances and partially due to the fact that as the first public facing application for this live data, we’ve had to work through some trial and error with regards to source.
All that said, we are going to roll out a trial version of BankProspector 2.0 to existing paid members and those on the list first. After both this internal and external beta period, we will open version 2.0 to new subscribers.
The data that is in BankProspector today is not as fresh as it needs to be. Part of the reason we’re excited about bringing you 2.0 is that the only way you could have more up to date bank data is if you were actually sitting in the bank – we’re truly excited about the advancements being put in place.
Once again we want to apologize to our paying members and fans for the delay and again say to you that we promise to make it up to you during the roll out with bonuses and gifts. Thanks again for your understanding.
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