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Mortgage Bankers Association Succumbs to a Short Sale

Adam Rust's picture

Posted February 8, 2010

The Mortgage Banker's Association of America, unable to make good on its mortgage, has entered into a short sale on its commercial loan outstanding on its Washington, DC headquarters.  The MBAA is selling to CoStar for $41.3 million, a sum far short of the $75 million in debt that they took out in 2007.

The MBAA announced their intentions back in October to sell 1331 L. St. because they couldn't make payments on their $79 million headquarters. The MBA had a whopper of a mortgage - a variable-rate loan mortgaged at 94.9 percent

What is the Logic of SEC Action?

Adam R.'s picture

Posted October 27, 2008

Last month, the SEC put more than 700 financial services firms on a list that gave them protection from short sellers.  The idea was to to thwart short-term short selling the exposed companies to runs on the value of their shares.  

It was not just banks, but also some builders, some insurance companies, and plenty of consumer finance firms.  There were a few odd exceptions (HSBC, GE), but the list was complete in its detail.  

Elsewhere, Congress extended huge loans to our automakers.  Now they are talking about more action.

But, what if you were in the business of making homes, financing them, and also providing vehicles for traveling?  

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