HVCRE: The Continuing Saga of Lenders
Loan financing is a cornerstone of real estate development. It’s a rare project that has captive capital to finance the entire project, and many investors expect that their contributions will be leveraged with debt financing....more
Real estate developers may be wondering what to expect for upcoming draws of construction loans or credit lines to fund real estate development if the FDIC places their lender into receivership. In the 2008/2009 financial...more
The Federal Reserve will likely raise its target federal funds rate by another 0.75 percentage point as early as next week, according to news reports. Fed officials have already raised benchmark short-term borrowing rates 1.5...more
Construction loans with companion mezzanine loans raise a host of concerns that are unique to more standard ICAs between a mortgage lender and a mezzanine lender. An intercreditor agreement (ICA) involving a construction...more
As Coronavirus (COVID-19) continues to ravage the nation’s health and economy, in-progress deals are being reassessed by buyers, sellers and lenders. We review a number of issues that parties to financed transactions should...more
In a recent Arizona Court of Appeals case, Helvetica Servicing, Inc., v. Pasquan, 2019 WL 3820015, (8/15/19), the Court of Appeals addressed the distinction between (1) a construction loan (or refinance of same) and (2) a...more
659 Chestnut LLC v. Parke Bancorp Inc., C.A. N17-05-114 MMJ (December 6, 2018) - This is an interesting decision because it deals with the rare instance when a party can prove a mutual mistake as to a contract’s terms so...more
A June 19, 2018, decision by the North Carolina Court of Appeals will likely make it more difficult for borrowers in the Tar Heel State to sue on the claim that their mortgage originator misled them as to their home’s value....more
Eric D. Lemont wrote the article, "Congress Introduces Bill to Clarify HVCRE Loans," which discusses proposed amendments to the Federal Deposit Insurance Act. Specifically, Mr. Lemont describes how the proposed legislation...more