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Home Loans Get New Clarity After Foreclosure Fears
6th September, 2023
The Federal Deposit Insurance Corp. (FDIC) looks to have found a way forward for the portfolio of affordable-housing assets it took over from failed lender Signature Bank. In its announcement that it has begun the process to sell the $33 billion of commercial real estate loans from Signature, FDIC said it will create joint ventures with potential buyers of the approximately $15 billion in loans for multifamily residences that are rent- stabilized or rent-controlled.

"Even in this environment, there are buyers of rent-stabilized buildings and lenders who make loans on them, because if the underlying properties are valued at cap rates near today's interest rates, they would be very safe investments to own as a loan or as real estate in the case the loans are not performing," Matt Pestronk, president and co-founder of Post Brothers, a real estate developer based in Philadelphia, Pennsylvania, told Reuters.
Read more at Newsweek