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Surprise Suprise - Federal Reserve Succumbing to Commercial Real Estate Lobbying

Mark , TraderMark forex hound
Surprise Suprise - Federal Reserve Succumbing to Commercial Real Estate Lobbying - Housing Crisis - Commercial Property - Real Estate - United States - Federal Reserve


Indeed word now leaking that the Federal Reserve is succumbing to the commercial real estate lobbying group and instead of doing 3 year loans they will now do 5 year loans to some of the most financially well off in the country.



The U.S. Federal Reserve is considering expanding one of its lending programs to include commercial mortgage-backed securities with terms longer than three years, a Fed official said on Friday. The investment community has been pushing for the Fed to accept securities with a five-year term, but the central bank is concerned about holding longer-term assets on its balance sheet because that can make it more difficult for it to pull back on lending once the economy recovers.

Intense behind-the-scenes talks between the Fed and the commercial real-estate industry over the matter are emblematic of the delicate position the central bank is in as it tries to revive markets. "In our meetings with the Fed, they said 'we get it' that the five-year term is of paramount importance to CMBS investors," said Christopher Hoeffel, president of Commercial Mortgage Securities Association, a trade group. (I love how "trade groups" now have access to the Federal Reserve strategy)

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