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CREFC Returns to the Big Apple

Next week, hundreds of industry participants will make their way to New York for CREFC’s Annual Conference. The conference promises to provide a forum to explore present and future market trends in commercial real estate, as well as an opportunity to gain valuable insight from many leaders in the market as to where we are … Continue Reading

CLO Update: New FDIC Rules on “Higher Risk Securitizations”

The FDIC’s new rules (promulgated per the requirements of the Dodd-Frank Act) for calculating deposit insurance assessments for insured depository institutions, including "large institutions" and "highly complex institutions," are set to become effective on April Fool’s Day, 2013. No kidding. As institutions of this type are active investors in CLOs, particularly the “AAA”-rated tranche of CLOs, … Continue Reading

HUD’s Final Rule on Fair Housing Act Liability Explained in New Dechert OnPoint

February has certainly been a big month for federal agencies to issue long-awaited final rules. The latest agency to throw its hat into the ring is the U.S. Department of Housing and Urban Development, which recently codified its long standing position that liability under the Fair Housing Act may be proven by disparate impact without … Continue Reading

ASF 2013 is Underway

Arguably the largest gathering of capital markets professionals in the world, ASF 2013 had over 5,300 registrants as of Monday morning according to Tom Deutsch, Executive Director, American Securitization Forum. Vegas is bustling and it’s always a pleasure to conveniently be out of town when there’s messy weather back east.… Continue Reading

REO-To-Rental Update: Moody’s Issues Guidance on Structuring Risks

Yesterday, Moody’s issued a Sector Comment expressing concerns with respect to proposed REO-To-Rental deals structured to utilize a collateral package comprised of equity-pledges in the SPV property owners in lieu of individual mortgage liens. Moody’s indicated that such equity-pledge structures may need to have strong third-party oversight (including regular monitoring of the ownership of individual … Continue Reading

CREFC Day 2: Riding the Wave

After a night of fun at Dechert’s party at the SLS Hotel, many of us needed a pick-me-up on Tuesday morning. Those of us that dragged ourselves out of bed and into the roundtable discussion on market issues and opportunities were not disappointed. The quick hitting discussion by over two dozen industry insiders, including Crunched Credit’s … Continue Reading

Optimism Abounds at the CREFC After-Work Seminar: “Lender Perspective: Current State of the Debt Markets & Trends for 2013”

As Philadelphians, it’s easy to think that 2012 has been a disappointment.  Our beloved Eagles are 4-9, the Phillies had the most disappointing season in recent history and the Sixers traded last year’s best player for someone who has not yet set foot on the court this season (to avoid any rage from hockey fans, … Continue Reading

Update on REO-to-Rental Strategies

One of this year’s most discussed investment ideas is the conversion of distressed or foreclosed single family homes into rental properties on a mass scale.  With the FHFA’s Real Estate Owned Initiative offering product in bulk sales and major institutions stepping up to develop programs to finance the acquisition of the pools, REO-to-Rental strategies are … Continue Reading

Caught up in a Waive: Federal Judge Holds Guarantor Liable for Disputed Deficiency

Last month, Federal District Court Judge Milton I. Shadur (a long-time Federal Judge and something of a legal legend in Illinois) held a guarantor liable for a deficiency claim brought in connection with a Georgia foreclosure – notwithstanding the fact that the deficiency could not be pursued under Georgia law. The case – Inland Mortgage … Continue Reading

Damned if You Do, Damned if You Don’t: Origination of “Qualified” Residential Mortgages May Trigger Disparate Impact Fair Lending Claims

Federal fair lending laws prohibit discrimination in credit transactions. The Equal Credit Opportunity Act (“ECOA”) and the Fair Housing Act prohibit discrimination in mortgage lending on the basis of certain factors including race or color, religion, national origin, sex, marital status, age, handicap or an applicant’s receipt of public assistance funds. The spotlight in this … Continue Reading

Qualified Mortgage Rule Emerges as Critical Issue in Restructuring of Residential Mortgage Market Regulation

The Consumer Financial Protection Bureau (the “CFPB”) is currently charged with defining a “Qualified Mortgage” (a “QM”). The federal banking agencies, the SEC, the FHFA and the Department of HUD are jointly charged with defining a “Qualified Residential Mortgage” (a “QRM”), and the QRM definition cannot be any broader than the QM definition. A narrowly … Continue Reading

Recent Cases Interpreting Intercreditor Rights

Recently, several courts have published decisions interpreting the rights granted to mezzanine lenders under intercreditor agreements – I’ve recently co-authored this Dechert OnPoint detailing the cases. These decisions, in large part, follow the holding of the Stuytown decision (not great news for many subordinate lenders). Also, a recent decision from the United States Bankruptcy Court … Continue Reading

Pay Me My Money Down: Recourse Guarantors Pick Up the Tab in Michigan

That great whooshing sound you heard a few weeks back may have been the air being sucked out of the room for thousands of warm bodies that penned recourse guaranties on (now) underwater loans during the market’s run-up. The cause: two recent cases coming out of Michigan (Wells Fargo Bank, NA v. Cherryland Mall and  51382 Gratiot Avenue … Continue Reading

Pre-Game Reading

For those of us with a rooting interest in Sunday’s festivities, it’s been a long two weeks. By Superbowl Saturday, Coach Belichick’s game plan will be set, the Material Girl’s setlist will be planned and the most famous ankle since Curt’s Bloody Sock will (hopefully) be mended, and it is with that in mind that … Continue Reading

More About that Chicago Vacant Buildings Ordinance

In August I wrote about an amendment to a Chicago vacant buildings ordinance that I thought (and I was one of many) was crazy, despite being sympathetic to the plight resulting from the city’s blight. The City of Chicago subsequently passed a less onerous, yet still problematic, vacant buildings ordinance effective as of November 19, … Continue Reading