By JEROME SAnzO, consultant, and KEITh KOCKEnMEISTER, principal Sound Shore Consulting LLC
Illustration by Dennis Wunsch
SOWIng ThE SEEDS FOR
RECEnT ACTIOnS FROM ThE FED AnD FDIC COuLD SpuR COMMERCIAL
MORTgAgE-MARKET gROWTh. ARE yOu READy FOR IT?
After dealing with the fallout of the residential mortgage crisis, the
government turned its attention to the declining commercial real
estate and commercial mortgage-backed securities (CMBS) markets
in the past year.
Most observers view the CMBS-origination decline, along with the
large schedule of maturing commercial mortgage loans expected
in the next three to four years, as a potential deterrent to economic
recovery. In addition, as the Federal Deposit Insurance Corp. (FDIC)
continues to close failing banks, it must deal with the significant
volume of distressed commercial real estate debt on these
institutions’ books.
The Federal Reserve Bank and the FDIC have implemented
various programs in the past year to address the
continuing crisis in commercial real estate lending
in hopes of reviving the market. Because they
cannot manage the process alone, the Fed and
the FDIC will continue to look to the private
sector for guidance and expertise. This creates
opportunities for commercial mortgage
brokers, as well as for asset managers, due-
diligence professionals and lenders.
MORE »
