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Article: Quality ratings for commercial mortgages.
- Article from:
- Mortgage Banking
- Article date:
- February 1, 1996
- Author:
CopyrightCOPYRIGHT 1996 Mortgage Bankers Association of America. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The time has come for commercial mortgages to carry an objective rating that denotes investment quality. The techniques exist today for adopting such a quality-rating system.
It was in 1986 that the worst real estate recession since the Great Depression began to take its terrible financial toll on private and institutional investors. The first foreclosures on apartment buildings hit in Texas, and then the downturn rolled through city after city in major markets across the country. This recession was to last until 1992, and some would claim we are still experiencing its effects today.
From a financial standpoint, however, the commercial real estate recession ...