Is the era of “extend and pretend” finally coming to an end? Did it ever exist in the first place? The idea that banks were extending problematic commercial real estate loans down the road to push off losses was viewed as an accepted fact by the industry. But a Federal Reserve Board economist published a paper disputing the widely accepted narrative. The paper titled “Pretend or Amend? On Evergreening in CRE” argued that banks have not blindly extended maturities on bad loans. In fact, the opposite occurred, the findings show. Since 2022, banks have been more selective about loan extensions […]

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