Borrowers who hold fourteen percent of Signature Bank’s loan portfolio have asked for deferrals on payments. The bank is granting deferral of principal and interest for three months and adding it to the end of the loan, but could extend deferrals to six months.
- Be Smart: Rents collected from stabilized apartments were at just 50 percent of normal levels in April, while Market-rate apartments fared better at closer to 80 percent. The bank’s exposure to market rate and rent stabilized buildings is right around 50/50.
- Breakdown from the conference call: Balances in multifamily loans were $14.88 billion, while those for other commercial asset classes were $10.53 billion. Construction financing stood at $1.2 billion.
- On the rumored rent strike: Signature President Joseph DePaolo: “We think rent levels have stabilized, but not if everyone’s going to go on a rent strike on May 1st… But we don’t believe most people want to do that.”