patrick.net

Sept. 15 (Bloomberg) -- The U.S. Treasury Department adopted rules letting lenders revise commercial real estate loans without triggering tax penalties in an effort to stem a rise in defaults.

The guidance would ease requirements for collateral and other guarantees in many cases. Borrowers in investor pools known as Real Estate Mortgage Investment Conduits would be allowed to refinance some loans without paying tax penalties. The rules were urged by the Real Estate Roundtable trade association while the Commercial Mortgage Securities Association favored narrower revisions.

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