Legislation likely to pass Congress within several weeks will serve to accelerate securitization of commercial real estate mortgages, industry officials say, adding that it couldn't have come at a more fortuitous time for insurers and bankers.

That is because a number of so-called bullet or balloon mortgages entered into by insurance companies and large commercial banks in the halcyon days of the mid- and late-1980s are coming due, and by facilitating securitization of commercial mortgages, the law should ease the shock to the market from the anticipated glut of refinancings.

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