TBMA and Other Associations Submit Comments to the FASB on the Disposition of a Defaulted Loan Under Certain Circumstances
Published on:
January 1, 2001
The Bond Market Association (TBMA)*, the Commercial Mortgage Securities Association, the Mortgage Bankers Association of America, and the Real Estate Roundtable provide comments to the Financial Accounting Standards Board (FASB) requesting the FASB to answer the following question:
- Is the disposition of a defaulted loan under the circumstances specified below, and the activity of a special servicer which leads to that disposition, a permitted activity of a qualifying SPE pursuant to paragraph 35.d. of FASB Statement No. 140 which addresses limitations on sales or other dispositions of assets by a qualifying SPE?
The groups believe that a positive answer to this question is the appropriate response and one that is critical to the real estate industry, which heavily relies on the availability of funding off commercial mortgage loans by institutional investors through investments in commercial mortgage-backed securities (CMBS).
*SIFMA is the product of a merger between the Securities Industry Association (SIA) and The Bond Market Association (TBMA) in 2006.