Landlords’ Struggles Hit US Banks Hard
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Landlords nationwide are struggling with rising interest rates, soaring insurance premiums, and, in certain states, rent ceilings that stifle their ability to offset rising expenses. According to Fitch Ratings, this has resulted in a domino effect on various regional banks that have large multifamily loan portfolios, putting them at risk of losses. Regional banks with significant multifamily loan portfolios in states with strict rent-control laws, such as California and New York, are especially vulnerable to substantial losses.
