Signature Bank (SBNY)

[freddie me]

*FDIC to consult with city, state housing officials?

On April 3, U.S. Rep. Ritchie Torres, whose district covers much of the Bronx,
called on the FDIC to consult with city and state housing offi cials on the sale of Signature’s loans.

“It remains unclear who might end up purchasing this portfolio and whether thebuyer will be committed to prioritizing the needs of residents and maintainingaff ordable housing,” Torres wrote.

“FDIC is giving [the Department of Housing Preservation and Development] achance to review the loans before they are sold to identify potential distress,”said Rachel Fee, executive director of aff ordable housing group New YorkHousing Conference, who said the move may “ensure loans for at-risk buildingsland in responsible hands.”

That may prevent the debt from being scooped up by a buyer intent onforeclosing. But for property owners already wary of the regulatory environment,additional oversight could mean prioritizing tenants’ needs over their own.

“It probably helps that FDIC Chair [Martin] Gruenberg grew up in an apartmentbuilding in the Bronx,” Fee added. “He understands what’s at stake.”