How Transfer Fees Can Help Lenders.
Bank examiners, declining property prices and increased foreclosures all have a tremendous impact on profits and core capital. However, Capital Recovery Fees may help.
Because tCapital Recovery Fees represent a fully-collateralized income producing interest in real property with no meaningful risk of credit default, developers can use the rights to shore up their collateral or they can potentially sell the rights for liquidity today.
How Capital Recovery Fees Impact Lenders.
One question that lenders often ask is whether or not the existence of a Capital Recovery Fee can render a loan non-conforming. Each Freehold transfer fee instrument is well-crafted to insure that loan is not rendered "non-conforming". In addition, each instrument includes important lender protections.