At the end of 2015, commercial banks and other financial institutions collectively owned $15 billion in commercial real estate equity. The vast majority of these holding are the result of which of the following types of investment by these institutions?

Question

Quizplus · Accepted Answer

The vast majority of commercial real estate equity held by banks and financial institutions is typically acquired through borrower default and foreclosure. This is because when borrowers fail to meet their loan obligations, the lending institutions often take ownership of the collateral real estate as a means to recover the outstanding loan amount.

At the End of 2015, Commercial Banks and Other Financial