Fed: TALF Bailout Program Gets Extended Until March of 2010

August 17, 2009 by · Leave a Comment
Filed under: Policy News 

Here is the first piece of commercial real estate bailout that I have been expecting.  In this AP news piece, they mention that the Term Asset-Backed Securities Loan Facility program has been extended to cover CMBS (Commercial Mortgage Backed Securities).  It mentions that that creating CMBS takes time and March 2010 is not that far off so we can either expect another extension or another program that would be more direct to the commercial mortgage industry to get the money more directly.

News (Associated Press):

The Federal Reserve has extended the length of a program intended to spur lending to consumers and small businesses at lower rates, but the central bank said it had no plans to expand the types of loans being made.

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Commercial Real Estate gets Bailout Funds thru TALF

May 4, 2009 by · Leave a Comment
Filed under: Real Estate News 

Called it, this is the first step with more to come.   The Term Asset-Backed Securities Loan Facility or TALF is now extending its program to cover CMBS or Commercial Mortgage Backed Security.  Here is what I have to say about it and a link to the press release.

Fed offers TALF lifeline to commercial real estate industry

 

 

 

Commercial real estate industry seeks U.S. taxpayer money

December 24, 2008 by · Leave a Comment
Filed under: Real Estate News 

Well if this is what the American public wants then we should bailout everyone and any failed businesses between now and 2001.  Its just absurd the amount of lobbing that is happening right now and it shows that our elected officials only respond if you have enough money to matter.  Our founding fathers must be rolling in thier graves right now with the direction and almost total disregard for the founding principles of our great country.  From now on we will be known as the U.S.S.A (United Socialist States of America).  Bail out the Commercial Real Estate Industry?  Why, what good would that do it we do not have companies to fill these spaces with real demand for their products?  Hey if your a landlord on a commercial property and you bought during the boom then your just a speculator and you deserve to take the loss.  If you had an exisiting building, then maybe it would be wise to have a program to get these owners into loans that reflect the current value so they can try and make ends meet.

News:

Some of the country’s biggest commercial real estate players are asking the government for help, as their $6 trillion industry of hotels, office buildings and shopping malls faces a record amount of debt coming due in the next few years.

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U.S. commercial mortgage-backed bond yields soar

November 14, 2008 by · Leave a Comment
Filed under: Real Estate News 

No surprise that now we are waking up to the fact that we are facing a serious recession, the commercial real estate market is finally starting to lag, prices are declining and risks on the bonds are rising.  This in turn, means investors are demanding higher returns if they are going to invest in any Commercial Mortgage Back Securities (CMBS).  According to Reuters, some bonds are being quoted at a huge 12% yield.

News:

Yield premiums on bonds backed by office buildings, stores and hotels soared to record highs this week as concerns about economic growth and doused hopes for a federal asset purchase program plagued the market.

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Donald Trump sues lenders of unfinished skyscraper project

November 9, 2008 by · Leave a Comment
Filed under: Real Estate News 

Well ‘The Donald’ has a talent to get lenders to see things ‘his’ way.  I believe he will get his extension because we still have many wealthy people in this country and they like to live in his form of luxury.  The release talks about getting a extension on a $640 million dollar commercial construction loan.  If I was a lender I would rather have this marketing genius working on selling these units then to risk foreclosing on the project and then trying to sell them in this technically weak real estate market.

News:

Donald Trump sued the lenders of an unfinished Chicago skyscraper as he seeks an extension of the credit facility, amid the impact of the financial crisis in the real estate business, the Wall Street Journal said on its Website on Friday.

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