Signature Bank Borrowers Coalition
Promoting alignment with equal consideration for borrowers’ along with wider policy/reform advocacy in the fair and due process of equitable resolution, modification, workouts, extensions of the SIGCRE-23 Loan Pools
Mission
The Signature Bank Borrowers Coalition (SBBC) champions fair lending and advocates for borrowers in the wake of Signature Bank’s closure. We work with stakeholders to ensure just treatment for borrowers while minimizing overall harm to affected communities.
Together, the SBBC strives for a sustainable and equitable outcome for all involved.
Purpose
The Signature Bank Borrowers Coalition (SBBC) champions fair lending and advocates to ensure just treatment for borrowers. Beyond borrowers of the SBBC, SBBC as a non-profit organization will also endeavor to advocate policy/regulatory reform promoting risk mitigation to borrowers as well as sharing insights with regulatory, legislative, executive and judiciary bodies.
Together, the SBBC strives for a sustainable and equitable outcome for all involved.
Our Priorities
- Fair and equitable treatment of borrowers: We advocate for transparent and consistent practices throughout the loan resolution process.
- Balancing borrower needs and sales proceeds: We seek solutions that benefit both borrowers and the communities and markets that the FDIC seeks to protect, especially during seized bank asset sales.
- Minimizing community impact: Our work will protect neighborhoods and businesses served by the bank from undue hardship.
- Recognizing collateral realities: We want to ensure that loans be given fair and due process for consideration for extensions, modifications, workouts or resolutions.
Press
Brookfield chides US bank regulator for ‘secret’ auction of housing loans
Investment group complained that the FDIC awarded Signature assets to a much lower bidder
Blackstone Already Planning to Sell $1.8B Worth of Signature Bank CRE Loans: Report
A Blackstone-led joint venture won a 20% stake in a $17B loan pool in December 2023
Brookfield Warns Of Legal Action If FDIC Accepts Lower Bid For Signature Bank Loans
Brookfield is alleging that the regulator’s process is shrouded in secrecy and potentially in violation of the law.
Why conventional wisdom is wrong about Signature loan sale
Insiders doubt auction will reset commercial and rent-stabilized valuations
“Frank asserted that the financial institution was shuttered “prematurely” and
was a casualty of guilt by association with the precursor Silicon Valley Bank collapse.”
Brian Lee – Litigation Reporter @ New York Law Journal
Immediate Objectives: Q1 2024
- Ensure Signature Bank borrower’s rights are represented and advocated fairly and equitably vis a vis FDIC and its various current loan portfolio ownership JV’s and/or new owner
- Seek immediate extensions/modifications for matured and near maturing loans.
- United stance in raising awareness and advocation for statutory limitations on lender-imposed or servicer-imposed penalties, late fees, interest and other fines ensuring borrower’s financial positions are not deliberately weakened to the borrower’s own detriment for matured or near maturing loans.
- Present a unified and impactful voice along with advocacy for borrowers and their protective rights to ensure Borrower’s rights are protected against the new lenders/servicers' possible predatory schemes and egregious behavior.
- Work for equitable resolution methods
- Inquire why borrowers were not considered for direct participation or cooperation as a primary measure for workouts.