Two things jumped out at me this morning: I was surprised to read about Fitch’s announcement that CMBS defaults rose to 12.9% at the end of June, and that CMBS delinquencies were at a record high in July (at 9.88%). This means that work on distressed CMBS loans will not taper off in the near… Continue Reading
Tag Archives: CMBS servicing
Is CRE In Recovery Mode? The Task List Tells Me . . . .
Posted in Good Times for Lenders, Market Trends, TrainingSo, where are we in the "stages" of the current commercial real estate cycle? Near the end? Midway? One way to measure is to examine "what" we’re doing – during our work day. This is not a measure of the market (number of defaults, etc.), but a look at our work – and "how" we… Continue Reading
TX Court Pounds The Gavel Again: CMBS Servicer Has Ability To Sue
Posted in 1 Guest Writers, Market Trends, Remedies, Tough Times for LendersIn many 19th hole country club gatherings across the nation, there is a lot of discussion on whether CMBS loans really are enforceable. Unfortunately, the answer to that question is multi-faceted. (It has two parts to it.) As part of his focus on risk management issues for financial service companies, Brian Vanderwoude has this follow… Continue Reading
U.S. Treasury Department Issues Guidance on Modification of Commercial Mortgages Held By Real Estate Mortgage Investment Conduits (REMICs): Will the Floodgates Open?
Posted in Good Times for Lenders, Tough Times for Lenders, Workout IssuesIn September, Keith Mullen posted a blog entry attaching the IRS and Treasury Department’s announcement clarifying and expanding the "significant modification" REMIC rules. The first announcement was the IRS guidelines contained in Rev. Proc. 2009-45, which provides guidance for modifications to certain loans without triggering an IRS challenge to the tax status of the REMIC. The… 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
Into the Looking Glass (Day Three – part 2): 2009 MBA-CREF – CMBS Special (workout) Servicing Myths? Fact or Fiction
Posted in Good Times for Lenders, Market Trends, Remedies, Tough Times for Lenders, Workout Issues(This is part of a series of postings from the 2009 MBA-CREF convention in San Diego.) (Trends; Arriving; Day One; Day Two; Day Three) My time at the convention has been a series of "firsts" for me: "live" blogging on Day Two during the Opening Session talk by Paul Begala of CNN and Tucker Carlson of MSNBC (thereby cementing,… Continue Reading