U.S. banks with significant lending exposure to some multi-family properties and particularly rent-controlled housing are vulnerable to posting losses this year on rising costs facing landlords, according to Fitch Ratings analysts. On a Wednesday call, Fitch Ratings analysts highlighted the risks facing banks which have underwritten loans behind apartment complexes and other multifamily properties. Lending by banks to multifamily borrowers grew 32% since 2020 to $613 billion at the end of 2023, according to a March 19 report by Fitch.
The Zacks Analyst Blog Highlights JPMorgan, New York Community and Moody's
The FDIC will more closely scrutinize mergers that create banks with more than $100 billion in assets under a proposal that the board approved recently.