The Signature Bank Borrowers Coalition (SBBC) today issued a statement highlighting the significant challenges faced by borrowers following the controversial SIGCRE-23 loan sale to Hancock JV Bidco. This development marks a pivotal moment in the ongoing struggle for fair treatment and equitable practices in the commercial RE sector in the New York Metro Area.
The sale, which involved a significant portfolio of commercial real estate loans, has raised serious concerns among the affected borrowers. The SBBC points to the lack of transparency and fairness in the sale process, citing that many imprudent oversights such as failing to modify select matured loans which warranted long-term extension, leading to the detrimental value depression of properties as underlying collateral to the loan assets in the pools, further substantiating potential biases and disparate and unfair treatment of borrowers.
“The recent sale of the SIGCRE-23 loan portfolio has put our members in a difficult and uncertain position,” said officials of the Signature Bank Borrowers Coalition.
“We are witnessing a systematic erosion of borrower rights and a troubling departure from standard industry practices, which is why we are calling for immediate action.”
The SBBC is advocating for a comprehensive investigation into the sale, urging Congress to take a closer look at the FDIC’s compliance with federal laws and regulations. The Coalition emphasizes the need for equitable compensation for borrowers who have been harmed and negatively impacted by this sale, particularly those who have experienced financial hardship due to the FDIC’s handling of the situation.
Furthermore, the SBBC is pushing for legislative reforms to ensure that such situations are handled with greater transparency and fairness in the future. “This is not just about the SIGCRE-23 loan sale; it’s about setting a precedent for how similar transactions should be conducted moving forward,” added the SBBC official. “We need to protect the interests of small business owners and ensure that their voices are heard in these critical financial decisions.”
The Signature Bank Borrowers Coalition remains committed to advocating for the rights of borrowers and ensuring that ALL financial institutions and regulatory bodies are held accountable for their actions. The SBBC calls upon all stakeholders, including Congress, regulatory agencies, and the financial community, to join in addressing these pressing issues and working towards a more equitable and transparent financial system. For more information about the Signature Bank Borrowers Coalition and their efforts, please Join Us.
About Signature Bank Borrowers Coalition The Signature Bank Borrowers Coalition is a group dedicated to advocating for the rights and interests of borrowers affected by the commercial lending practices of financial institutions. The Coalition seeks to promote fairness, transparency, and accountability in the financial sector, particularly in the wake of significant loan sale transactions like the SIGCRE-23.
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