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Lenders 360

Tag Archives: Risk-based capital

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

Early Pay-off of a Commercial Mortgage Loan? Shhhh – here’s “why” it makes sense

Posted in Tough Times for Lenders, Workout Issues

Acceptance by commercial real estate lenders of a partial payment in full satisfaction of the loan (as a “discounted payoff” – a “DPO”), prior to the maturity of the loan, is a topic that receives little “public” attention. Here are a few reasons why we hear so little about this topic, and the challenges in… 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

NAIC Appoints Blackrock Solutions For Modeling Of CMBS Holdings (Stepford Wives Revisited?)

Posted in Market Trends, Tough Times for Lenders

The NAIC is the association of state insurance regulators.  It acts as a guide to state insurance commissioners, who in turn regulate insurance companies and their respective balance sheets and investments. Last year, the NAIC hired PIMCO to assist in the risk-based capital ("RBC") modeling of residential mortgage-backed securities (and accompanying solvency requirements). Below I… Continue Reading

Into the Looking Glass (Sunday committee meetings): 2009 MBA-CREF Convention – Topics of Interest

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

(This is a little out of order, in that in our Monday blog we covered in "real time" the Opening Session and today [Tuesday] we cover the Sunday committee meetings.  But then this is a blog, which is a bit different any way.  So, here is our summary of the Sunday committee meetings.) Although separate servicing and origination… Continue Reading