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

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

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

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

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 in the various jurisdictions differ somewhat, a quick basic refresher on available pre-judgment remedies is as follows:

Attachment
A writ of attachment is available in cases where a borrower is about to hide or dispose of all or part of the property, or to convert the property into money for the purposes of placing it beyond the reach of its creditors. An officer will seize the personal property through a writ of attachment and retain possession until ordered by the court to release the property. With respect to real property, a writ of attachment is akin to a lien against the property.

Sequestration
A writ of sequestration is available to a lender in a suit if there is an immediate danger that the borrower will use its possession to injure, waste or ill-treat the property, or to convert the revenue of the property to its own use. As in the case of an attachment, the officer executing the writ of sequestration will take possession of and care for and manage the property until foreclosure or order of disposition by the court. The officer will be liable for injuries to the sequestered property resulting from his neglect or mismanagement.

When dealing with income-producing property, such as apartment communities or development projects, attachment and sequestration may not fully protect lenders. In such cases, a temporary receivership or injunction may be the tools a lender needs to avoid significant costs and expenses later.


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