Developers' Turn To Mezzanine Financing Carries Some Risk

Law360, New York (July 24, 2012, 7:51 PM EDT) -- Mezzanine financing is booming among some developers looking to fill the gap between the value of their projects and the amount banks are willing to lend, though experts say the current legal and regulatory environment could cause new headaches with regard to such subordinate loans.

Banks and other financial institutions are increasingly reluctant to make senior loans for real estate projects in the wake of the housing crash and the lead-up to new regulations imposed by the Dodd-Frank Act, and the loans they do agree to...
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