Community banks issued higher proportions of commercial mortgages than did the big banks. Some 3,000 community banks have disproportionate amounts of commercial loans relative to their assets.

Commercial real estate mortgages have shorter terms than standard residential mortgages; some $1.4 trillion in commercial real estate debt will come due in the next three years and half of all commercial real estate mortgages will be underwater by 2011.

South Florida, metropolitan New York and Washington, DC, lead the nation in the per capita value of commercial real estate currently in foreclosure.

Responding to the problems many borrowers are already having refinancing commercial mortgages. President Obama has proposed expanding the SBA’s 504 loan program to temporarily support refinancing for owner-occupied commercial real estate loans. Currently, these loans cannot be used to refinance maturing debt.

“A couple dozen banks are willing to expand commercial credit this year, which is critical,” said Fred Filsoof, President of Coordinated Properties.

The lending expansion is aided by the Federal Reserve’s Term Asset-Backed Loan Facility, which is encouraging issuance of commercial mortgage-backed bonds. In addition, regulators are prodding lenders to extend terms for many existing commercial loans.