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What is the Liquidation Bureau ?

Wednesday, 28 December 2011



It is easier to state what the liquidation bureau is not. According to the New York Court
of Appeals, it is not a state agency (and therefore not subject to audit by the state
comptroller). According to the records of the Secretary of State, it is not a corporation.
And according to the Insurance Law . . . : well, let’s just say its status is undefined.
Before 1993 there were no statutory references to a liquidation bureau in the Insurance
Law, including the receivership article, Article 74. In 1993, subsection (g) was added to
Section 7405 (“Order of liquidation; rights and liabilities”) requiring the superintendent
as receiver to prepare an annual report on the status of each company in liquidation or
rehabilitation. The last sentence of this new section states: "This report shall be separate
and apart from other reports issued by the liquidation bureau of the department in the
normal course of its business." This is the only reference in the Insurance Law (actually
the only reference in the entire New York Consolidated Laws) to a liquidation bureau.
The Bureau's existence may be assumed, but its status and mandate are not defined
anywhere in the law. The home page of the Liquidation Bureau’s web site states:
“The New York Liquidation Bureau (NYLB) is a unique entity. [No debate
there!] Receiving no funding from taxpayers, it carries out the responsibilities of
the Superintendent of Insurance as Receiver, and acts on his behalf in the
discharging of his statutorily defined duties to protect the interests of the
policyholders and creditors of insurance companies that have been declared
impaired or insolvent.”
The bureau's web site also states that it has “performed this function since 1909, when the
New York State Legislature passed the law mandating that the Superintendent assume the
separate responsibility of Receiver.” However, the law does not establish a bureau to
carry out this function. The law requires that the superintendent be designated as
rehabilitator or liquidator to take control of the assets of an insolvent company and
liquidate or manage the estate. It also permits the appointment of deputies and assistants
to support the superintendent in this role as receiver. It was clearly anticipated that these
appointments would come from the key employees of the insolvent company itself  --
those with the greatest knowledge of the business and operations of the company being
liquidated -- and would be engaged only for the duration of the receivership process.3
© 2008-2009 Peter H. Bickford
The hiring of employees of the insolvent company, and the temporary nature of these
appointments, was succinctly summarized in a 1915 report to the New York State
Constitutional Convention Commission on the Organization and Functions  of the
Government of the State of New York (at page 118) -- just a few years after the statute
referred to in the Bureau's web site:
“The practice is to retain such of the employees of each company which
comes into liquidation as may be necessary to attend to the details of its
affairs, and to dispense with them as rapidly as consistent with the proper
conduct of its business.”
The current statute is consistent with this historical record of the temporary nature of the
receivership of insurance companies. Rather than authorizing the establishment of a
permanent bureau, current Section 7422 authorizes the superintendent to appoint deputies
and others to assist in the performance of the receivership function, "and all expenses of
conducting any proceeding under this article shall be fixed by the superintendent, subject
to the approval of the court, and shall be paid out of the funds or assets of such insurer."
Article 74 clearly views each insolvency as a separate proceeding with the superintendent
acting as receiver under the supervision and control of a Supreme Court judge for that
estate. Nowhere in the law is there any provision for the establishment of a permanent
agency or bureau to carry out this function, and there is no central judicial oversight
designated to coordinate the handling of all pending receivership proceedings
collectively.
The limited role and temporary nature of the agents assisting the receiver for a particular 
estate has evolved into a permanent liquidation bureau, particularly over the past thirty
years. This evolution occurred without a statutory, judicial or regulatory mandate to do
so. As the number and size of insolvencies increased dramatically in the late 1970s and
into the 1980s, the liquidation bureau grew into its own self-operating permanent
bureaucracy, flying under the radar and accountable to no one – not the legislature, not
the courts, and not the regulators.
The Bureau today has half as many employees (over 450 employees) as the entire New
York Insurance Department, and most of them are protected by union contracts. The
Bureau also purports to have a budget of over $100 million, but this "budget" is not 4
© 2008-2009 Peter H. Bickford
subject to any independent oversight. Although Section 7422 requires court approval of
expenses for an estate, there is no requirement in the law – including the much-touted
new legislation that would require annual audits – that the supervising court be provided
with any regular, interim financial or status report. More significantly, no one court
would be looking at the bureau or its budget as a whole.
The current administration has made a lot of noise about reforming the bureau and
making it more “transparent.” It is doing this, however, by making the bureau even more
permanent, contrary to the mandate of Article 74 and the statutory receivership scheme.
Is there an existing example of how the system could and should work under the existing
statutory authority?  The answer is yes!






The Insurance Receivership Process in New York


The Insurance Receivership Process in New York
By AvidWan
Introduction
Since the Mid-1980s I have actively represented managements, shareholders,
policyholders, claimants, and reinsurers (both as creditors and as debtors) of insurance
operations in liquidation or rehabilitation in New York.  During that time I have observed
the handling (or mishandling) of the receivership process spanning the administrations of
five Governors and eight superintendents.  Each new administration has vowed to “do
something” about the system, and in particular address the “mess” at the Liquidation
Bureau.  What has been clear from these efforts over the years is that the “mess” has been
largely misunderstood and the entrenchment and resilience of the Bureau grossly
underestimated.
When the current administration came on the scene in 2007, it was under the banner of
openness, transparency and reform.  When there appeared to be a significant disconnect
between the promise and reality, and in response to numerous expressions of
exasperation by colleagues, I began a series of eight articles on the receivership process
in New York, which I posted http://newarrival4u.blogspot.com/ at  from August 2008
through March 2009.  After completing the series, I received a number of requests for the
entire series.  I am therefore presenting this series of postings as one combined article.  


ELNY

Structured Settlements in 2011
In a prior blog post, "newarrival4u.blogspot.com" highlighted the historic significance of the ELNY liquidation as the dominant 2011 structured settlement industry development. This blog post offers a strategic perspective of the industry's status in 2011 focusing in part on the industry's three national associations and also providing a broader perspective for ELNY.
Strategic Overview - Primary Market
The National Structured Settlement Trade Association (NSSTA) celebrated its25th anniversary in 2011. Among its 2011 accomplishments, NSSTA noticeably improved its marketing and educational programs while focusing substantial resources to help minimize problems related to the ELNY liquidation. NSSTA has attempted to balance the need to inform its members (not the public) about ELNY's status with the need to promote the strength of its life insurance markets and the state guaranty fund system.
Speaking at NSSTA's 2011 Annual Meeting, Thomas Ronce, Chairman ofNOLHGA, described the current life and health guaranty system in the United States as experienced, well-financed and armed with a multitude of optional legal and financial tools. Applied to ELNY, this state guaranty system will substantially improve the recovery for many ELNY structured settlement recipients. The state guaranty system, however, will not make whole every ELNY structured settlement recipient. Unfortunately, even with guaranty fund payments and additional enhancements, many ELNY structured settlement recipients are expected to experience shortfalls.
NSSTA's 2011 Annual Meeting and Fall Educational Conference also showcased the current strength of the structured settlement market and its product providers.
  • Jim Morris, President, Chairman and CEO of Pacific Life Insurance Company, accentuated the current financial strength of U.S. life insurance companies generally and explained why structured settlement annuities represent an excellent strategic product for life companies. Confirming Morris' assessment, three new product providers (Mutual of Omaha, National Indemnity and Hartford) entered (or re-entered) the structured settlement marketplace during 2011.
  • William T. Robinson III, President of the American Bar Association (ABA) strongly endorsed structured settlements as "professional and dignified solutions" for injury victims based upon his first-hand experience as a litigation attorney. Robinson also suggested the ABA and NSSTA should identify shared interests and lobbying opportunities.
  • American General Life President Mary Jane Fortin described AIG, a structured settlement product provider that received more than $180 billion of loans and investments from the United States government in 2008, as "a strong, stable and resilient company dedicated to keeping our promises". Fortin also dispelled several "myths" about AIG, summarized AIG's recovery from the 2008 financial crisis and expressed optimism about the future of life insurance industry and structured settlements.
Despite these positive assurances, however, primary market structured settlement annuity sales have continued to trend downward for the past three years, arguably because of the 2008 financial crisis and historically low interest rates which many experts predict will continue for the foreseeable future. What has been missing from NSSTA's leadership during 2011 has been a positive vision for NSSTA's own future and the future of structured settlements.
David Ringler, NSSTA's first President, spoke during the NSSTA 2011 Annual Meeting. Ringler stated the most important reason for creating NSSTA was "having a place where everyone and anyone can sit down with each other and discuss the issues and viewpoints regardless of beliefs."  Sometime during the past 25 years, NSSTA lost sight of this original vision and now generally excludes industry voices and perspectives that challenge traditional structured settlement business models and practices.
As one result, two additional professional associations have formed with alternative structured settlement perspectives:
  • The Society of Settlement Planners (SSP) - SSP espouses the claimant's right to select his or her own structured settlement adviser and funding company. SSP promotes structured settlement annuities as a core product for special needs settlement planning and favors greater utilization of IRC 468B Qualified Settlement Funds (QSFs).
  • The National Association of Settlement Purchasers (NASP) - NASP promotes the right of structured settlement recipients, in compliance with federal and state laws, to sell their payment rights provided a state judge approves the sale in advance as being in the "best interest" of the transferor/payee taking into account the welfare and support of the payee's dependents.
To its credit, NSSTA expanded the scope of its educational programs in 2011 to discuss QSFs and to provide its members with more detailed information about structured settlement secondary market. The perspective for these NSSTA discussions, however, remains defensive and protective without any attempt to envision or discuss new business opportunities or product improvements.
By comparison, SSP's vision for the the future of structured settlements is defined and supported by its "Standards of Professional Conduct". SSP views structured settlements as a core product for personal injury settlement planning. SSP's vision agrees with and encompasses the business model Joseph DiGangi introduced to NSSTA in 2009 as "Settlement Consulting" which he characterized as "a wake up call for the industry." SSP's educational conferences continue to push structured settlement industry thinking beyond its historic boundaries and the inevitability of its path dependence.
In addition to SSP, three national legal associations are developing special needs business practices and models that expand the framework and opportunities for structured settlements:
  • Academy of Special Needs Planners (ASNP)
  • National Academy of Elder Law Attorneys (NAELA)
  • Special Needs Alliance (SNA).
Faced with the ELNY crisis, declining annuity sales and the continuing prospect of low interest rates, some primary market structured settlement stakeholders now recognize that business practices and models that made sense in the past may have survived despite the eclipse of their earlier justification.  S2KM believes more primary market stakeholders should expand their strategic perspectives and re-think structured settlements in the context of the changing legal and financial landscape.
For example, here are four 2010 developments with important consequences for structured settlement stakeholders that have heretofore received inadequate primary market educational attention:
  • Patient Protection and Affordability Care Act - how does health care reform impact injury victims and what opportunities does it create for structured settlements?
  • Dodd-Frank Wall Street Reform and Consumer Protection Act - how will the Consumer Financial Protection Bureau (CFPB) address structured settlement complaints?
  • NAIC Suitability in Annuity Transactions Model Regulation - what does "suitability" mean for structured settlement annuities and how does "suitability" differ from the "best interest" standard applicable to trustees, investment advisers and structured settlement transfers?
  • Spencer v. Hartford: class action settlement - what are the lessons learned and resulting new best practices for structured settlements?
Strategic Overview - Secondary Market
The ELNY liquidation is also having a negative impact on the secondary structured settlement market. Some industry experts have estimated that as many as 1000 of ELNY structured settlement annuities (out of the 4168 total) have undergone transfers of some or all payment rights. Investors who have purchased ELNY annuity payment rights may not be eligible to receive contributions from state guaranty funds which historically protect "consumers". The NYLB's December 7, 2011 letters warned ELNY payees "if you have transferred any part of your right to receive ELNY SSA benefits to a third party, you may not be eligible to receive benefits from CABC related to the benefits you transferred."
Although the financial crisis of 2008 had a devastating short term impact on the structured settlement secondary market, the market has experiencedrobust sales in 2011 as institutional investors continue to be attracted to the relatively high rates of returns generated by restructured (post transfer) payment right obligations. More individual investors, including personal injury claimants and their attorneys, have also begun purchasing restructured payment rights although some industry experts caution against potential tax and securities law uncertainties.
The structured settlement secondary market changed dramatically in 2011 with the announced merger of  J.G. Wentworth and Peachtree Settlement Funding. The merger combined the two largest purchasers of structured settlement payment rights with an estimated 80-85 percent of the market.
The merger highlights a remarkable turnaround for Wentworth whose shareholders control the majority of the combined companies. In 2009, Wentworth and two affiliated companies entered Chapter 11 bankruptcy protection after the company "encountered liquidity problems amid a tightening credit market". Wentworth laid off 120 of its 200 employees and closed its office in Las Vegas. Its general corporate bonds were "almost worthless" and were trading, if at all, for pennies on the dollar. Less than six months later, Wentworth emerged from bankruptcy with an announcement that JLL Partners (Wentworth's owners) had invested an additional $100 million in the firm.
In a significant case (Symetra v. Rapid Settlements) highlighting controversial business practices which were opposed by NASP as well as structured settlement annuity providers, a Texas court issued injunctions during 2011 prohibiting Rapid Settlement's prior business practices of using arbitration to by-pass state structured settlement protection statutes and taking security interests to gain rights of first refusal for future transfers.
Check the structured settlement wiki for additional S2KM structured settlement reporting:
ADDENDUM (12/12/2011) -  newarrival4u.blogspot.com's report above omits at least one important 2011 strategic structured settlement development. NSSTA and its product provider members launched the first-ever industry metrics study during 2011. For more information about metrics, see   newarrival4u.blogspot.com 's "Structured Settlement .




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ELNY Liquidation - 5

Tuesday, 27 December 2011


ELNY Liquidation - 5

Acting as agent for the Receiver of Executive Life Insurance Company of New York (ELNY), the New York Liquidation Bureau (NYLB) mailed letters (shortfall letters) on December 7, 2011 to many individual ELNY structured settlement annuity (SSA) payees notifying them about the proposed ELNY liquidation and restructuring agreement as well as the amount of their anticipated shortfalls.
The ELNY shortfall letters also encourage ELNY SSA payees with anticipated shortfalls to contact their ELNY SSA owner "who may be responsible for supplemental payments, depending upon the terms of the structured settlement agreement, to the extent full payments are not made under the Restructuring Agreement."
Many SSA recipients of the NYLB letters are understandably confused because their annuity contracts identify "First Executive Corporation" (FEC) as the owner of their SSAs. Unfortunately for these ELNY payees and their beneficiaries, FEC declared bankruptcy in 1991 and no longer exists. For a background summary about the rise and fall and ultimate bankruptcy of FEC, see this prior S2KM blog post.
To help SSA recipients of the NYLB shortfall letters better understand their situation, this blog post explains the difference between two alternative methods utilized to fund ELNY SSAs:
  • Traditional annuity financing (aka "buy and hold"); and
  • Qualified assignments - as defined in Internal Revenue Code Section 130.
Here is a graphic comparison of the "buy and hold" and qualified assignment financing alternatives, courtesy of The Settlement Services Group (TSSG), as set forth in Chapter 3 of "Structured Settlements and Periodic Payment Judgments" newarrival4u. Note: Patrick Hindert, author of "Beyond Structured Settlements", is also Managing Director of TSSG and co-author of newarrival4u.
Annuity Financing ("Buy and Hold")
As defined in  newarrival4u , “ 'annuity financing' [buy and hold] means that a defendant or its liability insurer (the 'obligor') (1) gives the claimant an unfunded, unsecured promise to pay money in the future and (2) purchases and owns an annuity to provide a source of funds to meet this obligation."
Applied to ELNY, the owner of the annuity (defendant or its liability insurer) is the obligor and, if ELNY cannot pay, then the owner is obligated to make the periodic payments or make up the difference.
"newarrival4u" further explains the rights and duties of the parties resulting fromannuity financing:
  1. "In exchange for a release from tort liability, the obligor promises to make periodic payments to the claimant and purchases an annuity to provide a source of funds to meet this obligation.
  2. "The obligor owns the annuity, and as such, retains all incidents of annuity ownership, including the right to change the payee of annuity benefits. Of its own volition, the obligor directs that annuity benefits be paid by the annuity issuer to the claimant.
  3. "The claimant has the right to receive periodic payments as due and may rely only on the general credit of the obligor for the collection of such payments. The claimant does not have rights in any property or investments owned by the obligor that are greater than rights of the obligor’s other general creditors.
  4. "The claimant has no express rights against the annuity issuer because there is no privity of contract between them. Nonetheless, the claimant receives annuity benefits directly from the annuity issuer, and has no reason to complain to the obligor as long as the benefits are received as promised."
Qualified Assignment
As defined in "newarrival4u", “ 'qualified assignment' means that the defendant or its liability insurer (1) first gives the claimant a promise to pay money in the future; (2) then transfers that obligation to a substituted obligor pursuant to [Internal Revenue Code] Section 130; and (3) thus extinguishes its contractual liability for the obligation so transferred."
Applied to ELNY, the substituted obligor/assignee/annuity owner is FEC and, assuming the qualified assignment complied with all of the statutory requirements, the original obligor/assignor (defendant or liability insurer) thereby extinguished (or intended to extinguish) its contractual liability for the transferred periodic payment obligation.
 further explains the rights and duties of the parties resulting from a qualified assignment:
  1. "In exchange for a release from tort liability, the defendant or its liability insurer or both (the 'assignor') promise to make specified periodic payments to the claimant.
  2. "The claimant agrees to discharge the assignor’s duty provided an acceptable new obligor (an 'assignee') promises to make the periodic payments to the claimant.
  3. "The assignee makes this promise to the claimant, the claimant accepts the assignee’s promise, and the assignor’s duty is discharged.
  4. "For qualified assignments entered into on or before November 10, 1988: The claimant has the right to receive periodic payments as due and may rely only on the general credit of the assignee for the collection of the payments. The claimant does not have rights in any property or investments owned by the assignee that are greater than rights of the assignee’s other general creditors."
  5. Note: because of a change in the tax law, for qualified assignments entered into after November 10, 1988, claimants may have a security interest in property owned by the substituted obligor without jeopardizing the tax-free status of the promised payments. If applicable to specific ELNY SSA payees, such a security interest could raise interesting legal issues because FEC also owed Executive Life of California (ELIC).
So what should ELNY SSA payees who received NYLB shortfall letters do?
  • First, they should try to locate copies of their annuity contracts, settlement agreements and, if applicable, qualified assignment agreements. If they have not personally retained these documents, they might try contacting:
    • The attorney who represented them in their original lawsuit; or
    • The structured settlement agent who helped purchase their annuity from ELNY; or
    • Metropolitan Life Insurance Company which has been administering ELNY annuities since 1991.
  • Second, they should retain legal counsel to review their documents and recommend options keeping in mind:
    • The January 16, 2012 deadline (Martin Luther King Day) for filing objections to the proposed ELNY Liquidation Petition and Restructuring Agreement; and
    • The announced ELNY "Hardship Fund" of at least $100 million (not a component of the Restructuring Agreement) created by a consortium of life insurance companies with a toll-free information line at 1-888-809-2254.

Start loving your small apartment,coolest bed in the world

Sunday, 25 December 2011

Avidwan is not afraid of small spaces. In fact, she favors them.

“Living in a small space isn't necessarily a bad thing” says the 27-year-old creator of Lindsey Runyon Design. “It actually gives an excuse to live more efficiently, use fewer resources and surround ourselves solely with items we truly love.”

As more Seattleites migrate to smaller living quarters in an effort to cut down on rent or to just get a taste of urban life at its finest, days of trying to fill up large empty spaces are long gone. But being spatially challenged doesn't mean a cramped lifestyle; it just means we need to get a little more creative.

PLAN IT

Ironically, Runyon says you don't always need the help of an interior designer to end up with a layout that works for you. She recommends measuring every wall, writing it down and even using scaled cut-outs of your furniture to help with arrangement. Having it mapped out makes it easier to efficiently plan for storage.






“When I’m designing, I like to think of the space as a sailboat. Space is minimal, but every single nook and cranny should have some sort of purpose to it,” Runyon says. “I often ask myself, how can we make this have as much functionality as we can, while still feeling spacious and comfortable?” For starters, Runyon suggests leaving thirty to thirty-six inches of space for walkways, and advises against too many small furniture items, which will only make the room look cramped. Incorporate a few well chosen larger pieces of furniture and don't be afraid to build up. “Try to stay away from having all your furniture at one level and low to the ground. There needs to be some variety,” Runyon says. “If you are going to do storage, go to the ceiling.” Incorporate bookshelves, install shelves or hang curtains starting at the ceiling instead of at window level. Going vertical adds interest and space without being bulky.

And quite possibly the most common yet practical advice: Consider not having as much stuff. “You are going to be living around every single speck of it,” Runyon says. “Love everything you have and get rid of everything you don't.”

STORE IT

Try exposed shelving in the kitchen, which can trick the eye and create an airy, open feel. Take off the cupboard doors, paint the inside (or line it with pretty paper for renters) and stack dishes neatly; just remember to weed through the contents regularly to keep it tidy. Experts advise using exposed shelves only for items used on a daily or weekly basis.

But there is no need to stop there. When storage space is minimal, don't be afraid to take the airy vibe throughout the home. Learn how to fold t-shirts or blouses in a neat way and display them on a shelf in your bedroom in order to free up storage space for something else. “Everyone knows somebody who has worked at the Gap,” Runyon laughs. Keep blankets stacked on a chest or trunk in the living area and towels folded on an exposed shelf in the bathroom. “It can really create a cool look while saving space at the same time.”

SHOW IT

The balcony is included in the floor plan, yet it often gets neglected. Capture and utilize the area as you do the rest of your home by adding potted plants and a chair or two. If space is really limited, hang lanterns, lights or plants. Runyon likes the look of wooden deck tiles that are easy to snap together to cover otherwise uninviting floors.









And don’t be afraid to show it off.
“Oftentimes people in Seattle living in studios or small apartments are hesitant to invite friends over, but who cares if guests have to use the couch as their chair or the ottoman as a table,” Runyon says. “Own it. Part of having a nice space is energy, people talking and laughing. It's good for your home.”




Commercial Mortgages


CLD offers commercial mortgage real estate financing nationwide. In order to simplify the commercial lending process we have divided our financing programs in three sections: Small, Mid, and Large commercial mortgage loan transactions:
  • Small commercial loans - commercial financing ($1 Million to $5 Million)
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  • Commercial real estate bridge loans
  • Construction loans
  • In addition to our core programs we also offer commercial real estate government agency sponsored related programs including SBA Loans, SBA-504, SBA 7(a), and USDA
  • Preferred real estate properties; office, retail, industrial, hospital & healthcare, self storage, church, hotel and mixed use
Small Commercial Real Estate Loans
Commercial Mortgage Loans from $1 Million to $5 Million
- Small Wholesale lending
  • Term - fixed rate: 2, 3, 4, 5, 6, 7 and 8 Years
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Small Wholesale Commercial Mortgages
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Mid Balance Commercial Real Estate Loans
Commercial Mortgages from $5 Million to $10 Million
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  • Terms - fixed rate: 2, 3, 4, 5, 6, 7 and 8 Year Loan Terms Available for Fixed Rate Products.
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Large Commercial Real Estate Loans
Commercial Mortgage from $10 Million to No Max
- Large Balance Wholesale Lending
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  • Assumable
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  • Property Types: Industrial, R&D Flex, Office, Retail, Manufactured Home Communities, Hotels, and Self-Storage
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- Large Balance Conduit Commercial Lending
  • Pricing: Fixed interest rates priced at competitive spreads over comparable maturity U.S. Treasury
  • Term: 5 - 20 years
  • Amortization: 30 Years Maximum
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  • Loan to Value Ratios: 80%
  • Assumable
  • Recourse: Non-recourse

Apartment Loans - Multifamily Mortgages


Apartment Loans - Multifamily Mortgages

Apartment lenders offering a wide variety of lending options nationwide. Commercial Loan Direct originates multifamily mortgages for its parent company CLD Capital. CLD offers diverse and aggresively priced apartment lending programs. Our company has partnered with Fannie Mae, Freddie Mac, HUD, FHA, REITs, Conduit, banks, and select institutional investors. CLD is an apartment lender providing highly customized solutions to help meet the investment needs and requirements of its clients.

CLD's Apartment Lender Programs:

  • Small apartment loans - Multifamily mortgages ($1-$5 Million)
  • Mid-balance apartment loans - Multifamily mortgages ($5-$25 Million)
  • Large apartment loans - Multifamily mortgages (No Maximum)
In addition to traditional multifamily mortgages CLD also provides financing for:
Seniors Housing Loans , Student Housing Loans, Affordable Housing Loans, Manufactured Housing Community Loans, Bridge Loans, and Construction Loans

Small Mortgages ($1 Million to $5 Million)

Small Fannie Mae Loans

  • Low Fixed interest rate
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  • Amortization: 25 and 30 years.
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Small FHA Loans

  • Loan Amount: $3-5Million
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  • Assumable: Apartment lender approval
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  • Term - fixed rate: 2, 3, 4, 5, 6, 7 and 8 Years
  • Adjustable rate available
  • Amortization: 20, 25, and 30 years
  • Prepayment: Multiple options
  • Loan to Value Ratios: 75% for most loans
  • Assumable: Apartment lender approval
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Small Conduit (non-recourse)

  • Pricing: Low fixed interest rates over U.S. Treasury
  • Term: 5 - 20 years
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  • Loan to Value Ratios: 80%
  • Assumable Loans: Apartment lender approval
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Mid Balance Loans ($5 Million to $25 Million)

Mid Balance Fannie Mae Multifamily Programs

  • Loan Amount: $2 Million to $25 Million
  • Low Fixed interest rate
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  • Assumable: Apartment lender approval
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Learn more about our Mid Balance Fannie Mae loans

Mid Balance FHA

  • Loan Amount: $5 Million to $20 Million
  • Low Fixed interest rate
  • Term & Amortization: up to 35-40 yrs
  • Prepayment: Multiple options
  • Loan to Value Ratios: Up to 90%
  • Assumable: Apartment lender approval
  • Recourse: Non-recourse
  • Available: Nationwide apartment lender
Learn more about our Mid Balance FHA loan program
Mid Balance Wholesale Multifamily Mortgage
  • Assumable: Apartment lender approval
  • Recourse: Non-recourse
  • Available: Nationwide apartment lender
Learn more about our Mid Balance Conduit Multifamily Programs

Large Balance Loans (No Maximum)

Large Balance Fannie Mae Multifamily Mortgages

  • Low Fixed interest rate
  • Term: 5, 7, 10, 15 or 18 years
  • Amortization: 20, 25 and 30 years.
  • Prepayment: Multiple options
  • Loan to Value Ratios: 75% to 80% for most loans (90% if new LIHTC Project)
  • Assumable: Apartment lender approval
  • Recourse: Non-Recourse
  • Available: Nationwide apartment lender

Large Balance FHA

  • Loan Amount: $20 Million to over $250 Million
  • Low Fixed interest rate
  • Term & Amortization: up to 35-40 yrs
  • Prepayment: Multiple options
  • Loan to Value Ratios: 90% for most loans
  • Assumable: Apartment lender approval
  • Recourse: Non-recourse
  • Available: Nationwide apartment lender

  • Pricing: Fixed interest rates priced at competitive spreads over comparable maturity U.S. Treasury
  • Term: 5 - 20 years
  • Amortization: 30 Years Maximum
  • Prepayment: Multiple options
  • Loan to Value Ratios: 80%
  • Assumable: Apartment lender approval
  • Recourse: Non-recourse
  • Available: Nationwide apartment lender
 

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