The June Standard & Poor’s report of the Case-Shiller Home Price Index tracking April 2011 home values indicated the first increase in values since July of 2010. Although the increase was only a modest 0.7%, it was seen by some as a positive sign. However, after seasonal adjustments were taken into account, it appears values continued their decline. As an estimated additional 2 million homes are waiting in foreclosure, pressure continues on the banking industry, especially small and regional banks, who continue to take losses related to the residential market meltdown. Until such time as sustained price increases exist in the Case-Shiller Home Price Index, commercial lenders will continue to see deterioration in values and hence capital on their balance sheets as it relates to their residential home portfolios and residential investment real estate portfolios. These concerns will have a negative effect on the capital available for new commercial loans.