When Washington issued new rules three weeks ago to facilitate the
modification process for troubled securitized loans, some leaders in
New York’s commercial real estate industry quickly took notice. But anyone hoping to see immediate help for struggling property owners
will be disappointed, experts who track commercial mortgage-backed
securities say. “I think it is premature. [The changes are] really just giving people
the opportunity to enter into negotiations,” said Tom Fink, senior vice
president at Trepp, a firm which tracks commercial mortgage securities.
“Whether it is going to make a difference on any of the loans in New
York City, it is too early to tell.” At a real estate panel last month, Robert Freedman, executive chairman
at commercial firm FirstService Williams, told the audience that the
changes were a positive development. “We will be hearing a lot more about it,” he said. The new rules issued by the Internal Revenue Service Sept. 15 allow the
special servicer to alter loans in CMBS pools under broader
circumstances than before. [more]