Res & Small Commercial Lending Work, Writing On The Wall Is Now A Billboard

[Meandering]

FEDERAL RESERVE / CONFERENCE OF STATE BANK SUPERVISORS

Community Banking Research and Policy Conference


Report:

Community Banking in the 21st Century 2017

If you are considering the future, and what aspects of the industry will be viable to you, read through the report. It is good data to help you define a course for your own future, whatever that may be.


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[Terrel L. Shields]

Deja vu all over again?

 

[Meandering]

Yup, but this time it will be different,
and have a red lining effect on rural/depressed areas.

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[Michael S]

Interesting read. The section on New Mexico appeared to be more from the perspective of some of the community banks in smaller communities but it all felt pretty accurate. I did a search for "appraisal" throughout the document and most of the comments were either saying that the appraisal threshold needs to be raised from $250k to $400-500k for commercial property, and/or that they had limited appraisers in rural areas and turn times were too long. One comment indicated that raising those thresholds would save borrowers and average of $2,000. I guess that means that they were paying an average of at least $2,000 for appraisals, possibly more if you figure they would use an evaluation instead. The latter, if ordered from a third party would still probably run at least $500 to $1,000.