Commercial real estate borrowers face trouble on twofronts: They are at risk of defaulting before their loansmature because the U.S. Total losses on loans securitized in 2007 are expectedto exceed 21 percent, said the report by Richard Parkus, Headof CMBS Research of Deutsche Bank Securities. Total losses on loans securitized from 2005 through to 2008are expected to be in the range of 11.5 percent to 15.3percent. Total losses for outstanding commercial mortgage-backedsecurities (CMBS) loans may be as high as 9 percent to 12percent as borrowers fail to meet monthly payments, or get anadequate loan to meet the balloon payment when a current loanmatures, according the report.
Moreinformation can be found at Department of JusticeU.S. Department of Justice Office of Public Affairs, +1-202-514-2008, TDD+1-202-514-1888. * Banks could lose $250-$300 billion from commercial loans Stocks | Bonds * CMBS defaults estimated at $236.1-$291.1 billion * CMBS losses estimated at $66.2-$87.5 billion NEW YORK, July 15 (Reuters) – More than one fifth of thecommercial real estate loans securitized in 2007, the peak ofthe boom, could be wiped out by borrowers failing to makepayments, according to a new report by Deutsche Bank AG(DBKGn.DE) released on Wednesday. OJP has fivecomponent bureaus: the Bureau of Justice Assistance; the Bureau of JusticeStatistics; the National Institute of Justice; the Office of Juvenile Justiceand Delinquency Prevention; and the Office for Victims of Crime. Additionally,OJP has two program offices: the Community Capacity Development Office, whichincorporates the Weed and Seed strategy, and the Office of Sex OffenderSentencing, Monitoring, Apprehending, Registering, and Tracking (SMART). The remaining SouthernBorder/HIDTA grant awards are being processed and will be announced in thenear future. The Southern Border/HIDTA grant program is part of more than $4 billion inDepartment of Justice Recovery Act funds available to assist state, local andtribal law enforcement and for other criminal justice activities that help toprevent crime and improve the criminal justice system in the United States,while supporting the creation of jobs and much needed resources for states andlocal communities.OJP provides federal leadership in developing the nation’s capacity to preventand control crime, administer justice and assist victims.
San Diego Countyplans to use the funds to create a team of 16 uniformed officers to patrol theborder for drug smuggling and criminal activity and fund a dedicated deputydistrict attorney to prosecute those apprehended. The San Mateo County Sheriff’s Office, along with theNorthern California HIDTA, plans to use the funds to develop an automatedintelligence management system to track wholesale distribution from Mexicandrug trafficking organizations out of the San Francisco area. The Attorney General was joined by local law enforcement officials as heannounced grant awards to the California communities of Chula Vista($2,864,605); San Mateo County ($800,700); and San Diego County ($4,999,996).The Chula Vista Police Department, on behalf of the California Border AllianceGroup, plans to use these Recovery Act funds to support task force efforts togather intelligence related to cross-border violence, including creating orretaining 10 positions. As part of the efforts to combat Mexican drug cartels, the Office of JusticePrograms (OJP) is administering the $30 million Recovery Act Assistance forLaw Enforcement along the Southern Border and in High Intensity DrugTrafficking Areas (Southern Border/HIDTA). This will provide resources forhiring, retention, assistance and equipment to law enforcement to combatcriminal narcotics activity stemming from the southern border-states. Previously, the Attorney General and other Departmentofficials participated in high-level meetings with U.S. and Mexican officialsat an arms trafficking conference in Cuernavaca, Mexico.