Treasury tries to smooth the path for CMBS restructuring

09/16/2009 | Bloomberg · Wall Street Journal, The

New tax rules released by the U.S. Treasury are aimed at giving a helping hand to commercial property landlords trying to renegotiate loans that were packaged and securitized as CMBS issues. "This new guidance provides servicers with a useful tool to assist the workout process, and we look to them to utilize it in a reasonable manner to support the nation's efforts to recover from the financial crisis and the Great Recession," said Steven Wechsler, president and CEO of NAREIT. Jeffrey DeBoer, CEO of the Real Estate Roundtable, said the revised rules "break the stalemate" that until now has trapped CMBS loans that aren't yet in default but need to be modified.

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Bloomberg · Wall Street Journal, The

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