REALTOR Magazine reports that U.S. bank regulators are close to issuing guidelines that would incent lenders to rework troubled commercial real-estate loans to help banks avoid larger losses.

With over 50 percent of the $3.4 trillion in outstanding commercial real estate debt held by banks, regulators foresee more bank failures.  

Construction and development loans are causing the most distress because they likely are not generating any income or revenue for the borrower, thus making it easier to fall behind.