The Real Deal Miami

Lennar works with feds to fix loan woes

February 11, 2010 11:02AM

Miami-based builder Lennar has completed a series of
transactions with the Federal Deposit Insurance Corp. to help resolve thousands of distressed real estate loans. A subsidiary
of Lennar, Rialto Capital Advisors, will take over the management and
resolution of two distressed loan portfolios with about 5,500 such
faltering loans, under an arrangement with the FDIC. The
deals will give Lennar a 40 percent stake in the loans, which carry an
unpaid balance of $3.05 million. The FDIC will retain a 6 stake and
provide $627 million in supporting financing at zero percent interest
for a seven-year term. Stuart Miller, Lennar President and CEO, said his
company has done well with loan workouts in the past; that activity
helped its bottom line in the early 1990s, the last major real estate
slide. [AP via ABC News]