July 2013

While we here at CrunchedCredit recognize that many of our readers spend their days deep in commercial lending land, we also like to provide updates for our residential lending friends from time to time (and for our commercial lending friends who like to be able to impress their resi-friends at cocktail parties).

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A bill was recently introduced in the Senate that could result in the wind-down of Fannie Mae and Freddie Mac. Under the bi-partisan “Housing Finance Reform and Taxpayer Protection Act of 2013”, recently introduced by Senators Bob Corker (R-TN) and Mark Warner (D-VA), Fannie Mae and Freddie Mac would be replaced by a new agency, the Federal Mortgage Insurance Corporation (the “FMIC”), tasked with operating a Mortgage Insurance Fund to provide a limited, government-backed guarantee on qualifying, privately issued mortgaged-back securitizations.Continue Reading Dechert OnPoint: Residential Mortgage Securitization Update: GSE Reform Bill

Typically, from deal to deal, I don’t (and can’t imagine many of my colleagues do) get too worked up about Article 9 of the UCC…I know what it says, I know what to do, especially when it comes to creating and perfecting creditors’ security interests in collateral. But this year, I have reason to pause, as the 2010 Amendments to UCC Article 9, which have been adopted by more than 40 states (but not NY (and some others)—as of yet) went into effect on July 1, 2013.Continue Reading Brief Summary of Key UCC Article 9 Amendments Effective July 1, 2013

I told the Blog team that I had sworn off writing about Europe for a while; but really. The FT opinionized last week that the EU ministerial decision to agree on a standard “bail-in” to fix broken European banks was a good thing. The editorial ended with a ringing endorsement “something is, however, better than nothing.” Really? It reminds me of Wile E. Coyote bravely trying to use a handkerchief as a parachute as he falls off the butte, again. Beep, Beep.Continue Reading The Consequences of a Failed Banking Union