As reported by HousingWatch.com, some in Congress, led by Dem. Paul Kanjorski (Penn.) and Rep. Calvert (Calif.) are growing increasingly concerned about the state of commercial real estate industry.
A letter, signed by 77 congressmen and women, was sent to both the U.S. Treasury Department the Federal Reserve warning of the damage a collapse of the $7 trillion industry, which supports some 9 millions jobs, could do to the recovering economy.
The critical moment people are looking ahead to comes in 2013, when $1.4 trillion in commercial mortgages will be due. According to Deutsche Bank analysts, about 65% of them will have a difficult time getting refinanced.
The New York Times has reported that these members of Congress would like the two federal agencies “to make a clear public statement encouraging lenders to continue to make credit available for performing assets, even if the value of the property has taken a hit in its value.”