Posted in FDIC on Oct 30th, 2009
The Associated Press reported a major development today regarding commercial mortgage modifications. A Policy Statement was released by the FDIC providing that banks will not be looked upon adversely by regulators for engaging in prudent commercial loan modifications. As I discussed extensively in my previous posts, one of the major reasons that banks have been [...]
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Bloomberg reported that Capmark Financial Group, one of the largest U.S. commercial real estate finance companies has filed for Chapter 11 bankruptcy. Capmark was feeling pressure on two fronts. First and foremost, they had originated more than $10 billion worth of commercial real estate debt. As the default rates on these loans began to increase, [...]
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Posted in Credit Markets, FDIC on Oct 19th, 2009
In another Bloomberg article today, it was reported that the FDIC basically dropped the ball when it came to enforcing their own guidelines. In 2006, the FDIC set forth guidelines providing that banks should not have commercial real estate holdings that exceeded 300 percent of their capital. I guess it’s pretty fair to say that [...]
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In a highly publicized article today, Reuters followed up on yesterday’s speculation regarding federal guidelines for commercial loan modifications. It now appears that this guidance for the workout of commercial mortgages will be unveiled in the very near future. I am closely following these developments as the impact that this will have on my clients [...]
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Bloomberg reported today that the FDIC will set guidelines to modify commercial real estate loans. This could be a major development for both the commercial real estate and lending markets. Government guidelines could provide lending institutions with a framework within which to modify commercial mortgages, something that they are desperately lacking. In addition, the guidelines [...]
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