The lack of liquidity, of course, is a huge drag on the recovery of the commercial real estate market. Buyers of foreclosed properties, or as white knights of deals in distress, need credit as part of the investment mix. As I’ve noted before (prior posting), capital market credit (in the nature of CMBS or… Continue Reading
Tag Archives: CMBS Loan
Changes in REMIC rules to help CMBS loan workouts? CMSA Weighs In
Posted in Good Times for Lenders, Tough Times for Lenders, Workout IssuesAt the September announcement of the REMIC announcements from the US Treasury the IRS, we posted copies of the materials relating to "significant modifications" to CMBS loans. Last week, Lou Strawn weighed in on his perspective on the significance of these changes. Today, the Commercial Mortgage Securities Ass’n gives us the industry’s "official" perspective in a white paper…. Continue Reading
Dealing With a Distressed CBMS Loan? New Guidance from the Feds
Posted in Tax Issues, Tough Times for Lenders, Workout IssuesSick and beyond tired of the inflexibility of CMBS servicers in making needed modifications to CMBS loans that we all know are in the ditch? Help might be here: On September 15, 2009, the IRS and the Department of the Treasury issued three pieces of guidance relating to commercial mortgage loans held by a securitization… Continue Reading
Into the Looking Glass: MBA Servicing & Technology Conference – day two
Posted in Good Times for Lenders, Market Trends, Single Purpose Entity, Tough Times for Lenders, Workout IssuesYesterday (Thursday) was the second, and my last, day of the conference. As I did with the first day of the conference, I summarize some of the sessions. So, here’s the executive summary: From a session on bankruptcy issues: as reported by the Commercial Mortgage Securities Ass’n in its press release, the bankruptcy court in the General… Continue Reading
Should a Borrower Intentionally Default on a CMBS Loan?
Posted in 1 Guest Writers, Remedies, Tough Times for Lenders, Workout IssuesBy Guest Writer – Christopher T. Nixon, Winstead PC CMBS Master Servicers typically lack the ability to modify a CMBS loan to preemptively address a potential loan problem. A CMBS borrower frustrated with such inability may elect to purposefully default on the loan to circumvent the restrictions placed on the Master Servicer and force the… Continue Reading
Key Differences Between CMBS Loans and Portfolio Loans in the Loan Default Scenario (Part 2)
Posted in 1 Guest Writers, Tough Times for LendersGuest Writer – Christopher T. Nixon, Winstead PC (2nd in a series of 2 postings) In my prior posting (Part 1), I covered some of the key differences between a workout of a CMBS loan and a workout of a portfolio loan. Here are some more: Flexibility. Due to REMIC rules and the restrictions and limitations… Continue Reading
Key Differences Between CMBS Loans and Portfolio Loans in the Loan Default Scenario (Part 1)
Posted in 1 Guest Writers, Tough Times for LendersGuest Writer – Christopher T. Nixon, Winstead PC (1st in a series of 2 postings) In the commercial loan default scenario, CMBS Special Servicers are not able to provide to borrowers many of the accommodations that may be provided to borrowers by portfolio lenders. CMBS Special Servicers are subject to many more restrictions and limitations… Continue Reading