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OCC’s Commercial Real Estate Lending Handbook: Misses the List on Legal Issues

Posted in Articles, Good Times for Lenders, Guaranty Issues, Market Trends, Remedies, Technology Notes, Training

Over the last few weeks, I’ve commented on the new version of the OCC’s Commercial Real Estate Lending Handbook (I give it a gentlemen’s C); and I listed a few legal topics that deserve some guidance from the OCC. “Guidance” could even merely be a list of important topics (ending with a warning that the… Continue Reading

OCC Lending Handbook Needs Parenting on Important Legal Topics

Posted in Articles, Training, Workout Issues

In an earlier posting, I reviewed the OCC’s new Commercial Real Estate Lending handbook .  The purpose of the handbook is to give parenting – I mean guidance – on risks inherent in commercial real estate lending.  On legal topics, the handbook takes a mind-boggling approach: it swings from legal light, to “I know it when I… Continue Reading

A Familiar Shadow: Anticipating CFPB’s Impact On Commercial Lending

Posted in Articles, Good Times for Lenders, Market Trends, Technology Notes

The July 2013 issue of the “Mortgage Banking” magazine focuses on the Consumer Financial Protection Bureau (or “CFPB”).  The coverline  is this: “CFPB – A Powerful New Overseer.” Why my interest in this issue and coverline? In the past, commercial lenders (and their lawyers) blissfully ignored anything involving consumer lending.  We quickly distanced ourselves from… Continue Reading

Commercial Real Estate Lending: Lessons from 2012 and Predictions for 2013

Posted in Articles, Good Times for Lenders, Market Trends

The combination of 4 speaking engagements and working on 4 new (or revived) lending products buried me during the last several months.  Fortunately, I’ve navigated the course, and it is a new year.  It is time to take a look back at 2012, and step out with some comments on 2013. New commercial real estate… Continue Reading

Proposed Rules Could Change Penalty Box for Life Company Lenders

Posted in Articles, Good Times for Lenders, MEAF

As commercial real estate lenders, life insurance companies have a unique approach on dealing with potential losses or loan loss reserves in their mortgage loans holdings.  Unlike bank mortgage lenders, who apply their risk based capital requirements on a loan level basis, life insurance companies use an approach that applies at the portfolio level (called… Continue Reading

List & Links to “HOTTEST” Topics on L360 Point To: new lending, bad loans & iPad tips

Posted in Articles, Good Times for Lenders, Technology Notes, Tough Times for Lenders

My latest resolution is to be better at giving lists of the “hottest” or top topics on L360 – as selected by you. It gives me a rough sense of the direction we’re heading. The summer 2012 list now has several topics on “positive” lending issues, which reflects the general up-tick that I’m seeing in… Continue Reading

Credit Availability Increasing? . . . “Yes” for Employee Stock Ownership Plans (part 2)

Posted in Articles, Good Times for Lenders

Credit availability seems to be improving in the commercial markets.  One common (and obvious) test for new commercial lending is “how will the borrower fare in the tough times, or a stress test?”  Generally, loans to employee stock ownership plans (called an”ESOP”) do well.  So, loans to ESOPs will have access to credit. Starting about… Continue Reading

Fed’s New “Market Risk” Rule on Regulatory Capital for Banks Expected Soon: how will it impact liquidity for commercial real estate?

Posted in Articles, Good Times for Lenders, Market Trends

Answer: badly. The Federal Reserve’s new rule on regulatory capital requirements for banks will be announced in the next couple of days.  It probably will mean less money for commercial real estate. The scope of this new rule will help the banks (by requiring them to hold more in reserve) but it could hurt the… Continue Reading

MBA Report Shows Good Trends in Bad Numbers; BUT Judicial Foreclosure is a DRAG (I have questions)

Posted in Articles, Good Times for Lenders, Market Trends, Remedies, Tough Times for Lenders

Recently, the Mortgage Bankers Association published its “National Delinquency Survey” for the fourth quarter of 2011.   The report covers the delinquency and foreclosures  rates on first-lien mortgage loans, and includes @ 88% of all single family homes in the US.  Although the survey does NOT cover commercial mortgages, the data gives us important incite on trends AND information on the… Continue Reading

2012 MBA-CREF Convention (Day Two) – “Play It Again” is the Forecast

Posted in Articles, Good Times for Lenders, Market Trends

The MBA does a great job in planning sessions, and in selecting a location where lenders and their mortgage bankers can meet. The convention takes place at the beginning of the year, so that the lenders can articulate their goals, which allows immediate feedback from the mortgage bankers; and gives the mortgage bankers direction in… Continue Reading

1st Q Review: List of Your “Hot” TT4L Topics & Downloads

Posted in Articles, Good Times for Lenders, Market Trends, Tough Times for Lenders, Workout Issues

So what were the – "hottest" topics read here on TT4L during the first Q of 2011? the items most popular "downloads" of materials available for download on TT4L? The list (and links) below are the most widely read blog posts from ToughTimesForLenders (TT4L) from 1st Q of 2011. During Q1, we focused on a wide… Continue Reading

Calming Uncertain Waters: FDIC Board Issues a Transitional “Safe Harbor” For Sale Treatment Covering Participations and Securitizations

Posted in Articles, Tough Times for Lenders

At the end of last week, the FDIC’s Board of Directors adopted an interim final ruling amending 12 CFR Section 360.6 and provided a transitional "safe harbor," effective immediately for all participations and securitizations in compliance with that rule as originally adopted in 2000.  This action confirms that, notwithstanding proposed changes to "true sale" treatment… Continue Reading

Protecting the Interest of Bondholders as the “Controlling Class” in CMBS Investment Pools

Posted in Articles, Tough Times for Lenders

As most of you are aware, The Pooling and Servicing Agreement (PSA) is the operative document in defining the rights and obligations of the trustee, master servicer, special servicer, and classes of bondholders.  As an overall matter the PSA defines the relationships between the parties to the securitization.  It is an agreement that is hundreds… Continue Reading

Is the CMBS Rally Really Here to Stay?

Posted in Articles, Good Times for Lenders

Investors recently took down 2.3 billion dollars in TALF loans under the August Federal Reserve’s Legacy CMBS Term ABS Loan Facility, representing an impressive increase from the modest July subscriptions of 668 million. Over the past few months, we have seen CMBS AAA spreads tighten, although at this writing this trend seems to have abated,… Continue Reading

Pre-Judgment Tools to Reduce Need for Repairs Later

Posted in Articles, Tough Times for Lenders

With the rise in real estate defaults, and constant news of borrowers facing foreclosures taking out their anger and frustration on their houses and other property collateralizing the lenders’ loans, an increasing need exists for lenders to take pre-emptive steps to protect their collateral pending foreclosure or entry of a final judgment. While the laws… Continue Reading

Covered Bonds – A Little Heat for the Frozen Credit Markets?

Posted in Articles, Good Times for Lenders, Market Trends

In an attempt to breathe life into the credit markets, the last few months have been full of activity designed to encourage the development of a market for "covered bonds" ala the European model. "Covered bonds" are merely borrowings by financial institutions (especially banks) that ultimately are supported as bank obligations, but are first repaid… Continue Reading