Loan losses and reserves for Real Estate Loans

Group:

We are in the process of revisiting our loan loss reserve policy. We are
forunate to have only one loan reach foreclosure in our 12 year history. So we
have very little historical data to base establish a loan loss reserve. Our
loans cover four program areas of housing, environmental, community facilities
and economic development (loans to lenders, commercial real estate not loans to
individuals or for profit companies). Our loans are only in rural areas and to
non profits, municipalties and other for public benefit corporations. We do
site acqusition, construction and permanent loans.

If you have any historical data loan losses as it relates to our portfolio or
your own loan loss reserve policies I would greatly appreciate your comments.

Thanks,

Craig



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Craig:

If you send me a snail mail address, I can send you a research
paper I've been working on. It compares annual loan charge-off and
delinquency rates for every bank and thrift in the country during
1984-99, for broad loan categories -- namely: multifamily, 1-4
family and non-resid. real estate, agricultural, consumer, and
commercial. (For boring technical reasons, the document is too
big to send electronically, and I don't have time at the moment to
convert all the charts to a smaller format.)

Best -- Mark

=============================
Mark D. Flood
Senior Financial Economist
Office of Thrift Supervision
1700 G St., NW
Washington, DC 20007
202-906-6254
mark.flood@ots.treas.gov
=============================


---------------------------------------------------------------------
>From: Craig_Carbrey/Rcac@rcac.org
>To: CD Banking List <COMMUNITYDEVELOPMENTBANKING-L@cornell.edu>
>Message-ID: <8825696E.006093E6.00@bob.rcac.org>
>Date: Wed, 4 Oct 2000 10:34:52 -0700
>Subject: Loan losses and reserves for Real Estate Loans
>
>Group:
>
>We are in the process of revisiting our loan loss reserve policy. We are
>forunate to have only one loan reach foreclosure in our 12 year history. So we
>have very little historical data to base establish a loan loss reserve. Our
>loans cover four program areas of housing, environmental, community facilities
>and economic development (loans to lenders, commercial real estate not loans to
>individuals or for profit companies). Our loans are only in rural areas and to
>non profits, municipalties and other for public benefit corporations. We do
>site acqusition, construction and permanent loans.
>
>If you have any historical data loan losses as it relates to our portfolio or
>your own loan loss reserve policies I would greatly appreciate your comments.
>
>Thanks,
>
>Craig
>



This post transferred from the cdb-l mailing list