• A Compelling New Opportunity For Real Estate Borrowers
  • October 13, 2009 | Authors: Steven L. Lichtenfeld; David J. Weinberger
  • Law Firm: Proskauer Rose LLP - New York Office
  • On September 15, 2009, the Internal Revenue Service (the "IRS") issued new guidelines relating to commercial mortgage loan modifications held by Real Estate Mortgage Investment Conduits ("REMICs"). The new guidelines, which are effective as of September 16, 2009 and apply to loan modifications effected on or after January 1, 2008, will provide loan servicers with greater flexibility to modify commercial mortgage loans without the concern that such modifications may incur significant tax penalties. The goal of the new guidelines is to ensure the continued performance of performing loans and maximize the probability that troubled loans will perform.