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Mr. James said that regional banks will continue to suffer from subprime auto loans, construction loans and home equity loans.
Mr. Shields, 43, is the managing director of ING Real Estate Finance (U.S.A)., which has a $6.7 billion portfolio of term loans, construction loans and subordinate debt.
Those include loans, construction agreements, highway links and an agreement on natural gas resources as a buffer against Western economic penalties and denials of loans from major lenders like the World Bank.
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In the U.S., it is common business practice for the initial lender to provide an interim loan (the "construction loan") to build a building.
Even more than a mortgage loan, a construction loan is complicated.
Others specialize in particular areas, such as agricultural loans or construction loans.
Reserves for loans for construction projects that started before the credit crisis will start running out in the next six months.
Banks typically allocate an average of 15percentt of their loans to construction and the rest to consumer loans, business loans and other real estate.
The table at the top of page 101 displays loans to construction and development companies as a percentage of total loans.
While most banks usually do not give both a mortgage for buying the property and another loan for construction, Neil Bader, the president of IPI Skyscraper Mortgage, said there are banks known to most mortgage brokers that will make construction loans.
The cause, Mrs. Beaty said at the time, was bank-loan and construction problems.
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