Worries creep into commercial lending [Southern California]
O.C. is in a strong position, but there are some fears about borrowers defaulting.
Commercial lending is booming as developers rush to keep pace with the demand for office buildings and malls, but some lenders are starting to worry.
Lenders and investors in mortgages are losing their enthusiasm for these commercial loans. They worry that some borrowers might default because of rising interest rates that could erode property values.