FDIC wants to Securitize $36 Billion in Failed Assets

This is seen as a milestone in the government efforts to rid the banking system of troubled assets according to Financial Times.

In the 80′s the FDIC created the Resolution Trust Corporation (RTC) and it is reported that the RTC guidelines may come into play once again.

I have no issue with the RTC plan if managed correctly, but I am concerned about the FDIC selling AAA rated bonds based on these troubled assets (why do we call them assets?).

Securitization seemed to be one of the major issues that got us in this mess. Also the underlying assests could loose value. I am not a financial guru, but although this would be good for the investor (maybe), as they would not take losses; the government still could and that burden, I believe, would now fall on the backs of the already strapped tax payer.

I would really like to hear what you have to say on this.

JW Najarian

CREPIG
CREDAA

Banks to Spend 2010 Coping with Commercial Mortgage Maturities

National Real Estate Investor
Dec 16, 2009 12:54 PM, By Sibley Fleming

As billions of dollars in commercial debt comes due over the next two years, with many loans originated from 2005 to 2008 underwater, the need for capital will skyrocket. Of the $3.5 trillion in commercial mortgage debt outstanding, more than $1.1 trillion is needed to service that debt. That’s according to a new 2010 forecast from New York-based financial analyst Keefe, Bruyette & Woods (KBW).

The scarcity of cash will be most acutely felt in the banking sector, which holds some 80% of the approximately $500 billion in commercial debt that will mature through 2011.

Regional banks are particularly weighed down with commercial mortgages and will have a tough row to hoe in 2010. According to the KBW Quantitative Research Group, 300 banks had more than 25% of their loan portfolios in commercial mortgages at the end of the third quarter.

Read More…..

This is why CREDAA exists. I read that the market is up and new home sales are up and they will probably be up till the middle of the year when incentives are due to end. I am sure they will create new incentives, but the story is the same.

Without the grass roots efforts of the commercial financial industry coming together to find solutions and staying on top of current situations and trends, it is my belief that a recovery will take an enormous amount of time.

CREDAA is working to build alliances with industry leaders with the experience to figure it all out and we will be announcing programs we have found that have great solutions in the months ahead.

RIISnet is one of the platforms we feel the industry needs to move forward with realtime valuation and quick asset turnaround. If you have not been on a Tuesday evening call; you are missing an amazing opportunity.

If everyone keeps doing the same old thing and expecting a different outcome then…… You get the picture.

Come to CREDAA and participate. We have an amazing plethora, cocophany and cornucopia of information and services we will be delivering soon.

FYI – CREDAA is already amazing and if you are not using it daily you are missing out.

Here are the features we already provide:

• My Page – Area where members can store data about themselves including headshots, profile, general info, pictures and other pertinent data to introduce themselves to other members. Member’s profile is also totally configurable to choose colors graphics and what messages they do and do not receive.
• Private email service – Send and receive emails from other members and with free site email address.
• Discussion Forum – This allows members the ability to discuss anything pertinent to the distressed market with other members. Forum also allows uploading pictures and attachments and can take html formatted text.
• Chat Forum – Real-time forum for open discussion on news and issues in the industry
• Blog – A member can read or write blogs on various topics associated with the distressed markets. The blog also allows uploading pictures and can take html formatted text.
• Groups – A member can join an existing group or create their own group based on membership needs. Within groups there is the ability to have discussions pertaining to your group.
• Events – Members can find industry and CREDAA events as well as post their own events
• Pictures – Members can search for particular pictures or post pictures for other members to see.
• Videos – Members can search or post industry videos for other members to see.
• News – Current 24/7 Industry news from across the web including blog posts from other industry services.
• CREDAA TV – Allows members the ability to view current and automatically updated distributed videos from major broadcasters like NBC, FOX, Bloomberg and others on FDIC, TARP FNMA, distressed, toxic, unstable and troubled notes and asset news.
• RSS – All features including personal have RSS capability
• Graphs and Analytics – CREDAA has standard and proprietary data, graphs and analytics for the distressed, unstable, toxic, troubled assets and notes industry.
• Member Search – CREDAA has a low level search to find members fast and a premium search ability to find resources and providers in the industry based on multiple criteria.
• Alliances – CREDAA has and will continue to create and foster alliances with industry leaders that we believe have workable solutions to the many issues faced by banks, brokers, lenders, property owners and investors in the commercial real estate industry.

The news service alone is increadible. We search out the WHOLE Internet for all blog stories and news items that deal with distressed, troubled, unstable, toxic assets and notes and serve them up to you in one easy to read place.

CREDAA TV is not just some kidstuff You Tube fun package. Again CREDAA uses a service to automatically serve you the latest troubled assets videos from video news feeds like NBC, FOX, Bloomberg and many more so you don’t have to search the world for the most up to date news, views and information

If we are missing something. Come and discuss it on the Forum or Blog it to the world.

JW Najarian

CREPIG
CREDAA

Shadow Inventory

Wanted to share with you “Carlini’s Comments” Real estate blog.

REAL ESTATE’S SHADOW INVENTORY
Filed Friday, December 11. 2009
It seems like toxic assets go down better when mixed with KoolAid.

The residential real estate has taken a big hit in the last couple of years and there are banks that don’t want to show the full impact of bad inventory they still have. If they did, more alarm bells would sound as to the bank’s real viability and financial strength (or weakness). This ignoring of toxic assets or keeping them off the books does not help in trying to assess where we are at as far as financial stability and economic recovery.

Do we really know the full extent of toxic assets still on the real estate books at all the banks? No. Are banks trying to hide some of the foreclosures that have not hit their books yet? Yes. To the often raised question of, “Have we hit the bottom yet?”, the answer is no.

Read More……..

How can we stop this madness?

JW Najarian

CREPIG
CREDAA