RCA in the commercial property press:

Fifth Third, Regions May Face Stress-Test Struggle

Bloomberg reports: Fifth Third Bancorp and Regions Financial Corp. may be among regional lenders that struggle to pass the U.S. government’s stress test because they are mired in commercial real-estate debt, analysts say.

Commercial loans in default or foreclosure rose 43 percent in the first quarter to $65.9 billion from $46 billion at the end of last year, according to New York-based research firm Real Capital Analytics Inc. Commercial property values have fallen at least 30 percent since their peak in 2007.