Question: I am a commercial mortgage broker in California. I have had nearly every bank recently advise that their examiners are preventing them from lending. How can we get out of this mess if the examiners, in effect, prevent the banks from lending?
Paul Solman: Are you sure they’re not just being a lot more selective, Rob? Isn’t that the excuse you would use with a borrower you’re spurning: “The examiners won’t let us lend”?
On the other hand, sure, examiners are now SUPPOSED to be tougher, after all these years of looking the other way, or not looking at all. The recent suspension of mark-to-market requirements was a step away from overly tough regulation, but surely we want banks to be less promiscuous than they were, no?