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I'm all for cutting taxes (and spending) ... across the board, for everybody ...
Let's see if we can identify the players/beneficiaries
http://www.bloomberg.com/apps/news?p...d=aV2kxXLJIbeo
Sept. 15 (Bloomberg) -- The U.S. Treasury Department adopted rules allowing lenders to revise commercial real estate loans without triggering tax penalties in an effort to stem a rise in defaults.
The regulations, urged by trade associations such as the Real Estate Roundtable, would ease requirements for collateral and other guarantees in many cases. Borrowers in investor pools known as Real Estate Mortgage Investment Conduits and Real Estate Investment Trusts wouldn’t be subject to tax penalties.
“Changes to the regulations are necessary to better accommodate evolving practices in the commercial-mortgage industry,” the regulations say. “These changes will affect lenders, borrowers, servicers and sponsors of securitizations of mortgages” in Real Estate Mortgage Investment Conduits.
The regulations were issued as Wall Street braces for a refinancing crisis in commercial real estate. The default rate on commercial mortgages held by U.S. banks more than doubled in the second quarter to 2.88 percent, according to New York-based Real Estate Econometrics. It may reach 4.1 percent by year’s end, the highest since 1993.
Deutsche Bank said in an April report that more than $1 trillion in commercial loans that are scheduled to mature over the next decade will involve refinancing difficulties.
The regulations will take effect Sept. 16.
Let's see if we can identify the players/beneficiaries
"The regulations, urged by trade associations such as the Real Estate Roundtable (read: lobbyists), would ease requirements for collateral and other guarantees in many cases. Borrowers in investor pools known as Real Estate Mortgage Investment Conduits and Real Estate Investment Trusts wouldn’t be subject to tax penalties.
“Changes to the regulations are necessary to better accommodate evolving practices in the commercial-mortgage industry,(read: borrowers can't pay)” the regulations say. “These changes will affect lenders, borrowers, servicers and sponsors of securitizations of mortgages” (read: bankers, developers/landlords, wall street, in that order) in Real Estate Mortgage Investment Conduits. "
Where's Michael Hudson. I'm sure he can help us understand this.“Changes to the regulations are necessary to better accommodate evolving practices in the commercial-mortgage industry,(read: borrowers can't pay)” the regulations say. “These changes will affect lenders, borrowers, servicers and sponsors of securitizations of mortgages” (read: bankers, developers/landlords, wall street, in that order) in Real Estate Mortgage Investment Conduits. "
http://www.bloomberg.com/apps/news?p...d=aV2kxXLJIbeo
Sept. 15 (Bloomberg) -- The U.S. Treasury Department adopted rules allowing lenders to revise commercial real estate loans without triggering tax penalties in an effort to stem a rise in defaults.
The regulations, urged by trade associations such as the Real Estate Roundtable, would ease requirements for collateral and other guarantees in many cases. Borrowers in investor pools known as Real Estate Mortgage Investment Conduits and Real Estate Investment Trusts wouldn’t be subject to tax penalties.
“Changes to the regulations are necessary to better accommodate evolving practices in the commercial-mortgage industry,” the regulations say. “These changes will affect lenders, borrowers, servicers and sponsors of securitizations of mortgages” in Real Estate Mortgage Investment Conduits.
The regulations were issued as Wall Street braces for a refinancing crisis in commercial real estate. The default rate on commercial mortgages held by U.S. banks more than doubled in the second quarter to 2.88 percent, according to New York-based Real Estate Econometrics. It may reach 4.1 percent by year’s end, the highest since 1993.
Deutsche Bank said in an April report that more than $1 trillion in commercial loans that are scheduled to mature over the next decade will involve refinancing difficulties.
The regulations will take effect Sept. 16.