Free With Registration: Federal Relief for Distressed Commercial Market
Andrew Lance and Romina Weiss, partners at Gibson, Dunn & Crutcher, and Daniel Wasserman, an associate at the firm, write that the concurrent release of final regulations by Treasury Department and a revenue procedure by the IRS governing the U.S. federal income tax treatment of collateralized mortgage-backed securities held by a real estate mortgage investment conduit, followed shortly by comprehensive revised guidance for commercial real estate loan modifications from the Federal Reserve, demonstrate a welcome heightened focus at the federal level on the expanding crisis in commercial real estate that until now has been overshadowed at the regulatory level by efforts to deal with a parallel crisis affecting residential real estate. Practitioners providing counsel regarding distressed real estate need to become familiar with these developments, as part of the framework for crafting approaches to address existing, imminent or anticipated distress at commercial real estate assets.
