My "CMBS 2.0 Taking Shape" series focuses (of course) on my perspective: a lawyer closing CMBS loans, and also consulting with other lawyers and paralegals on CMBS loans where I am not the primary closing attorney. Last week, Anna Carlisle with Structure Credit Investor published a nice piece focusing on these important questions from a… Continue Reading
Tag Archives: CMBS
2010 CRE Credit Snap Shot: More Negative; Some Positive; Lessons Learned (Take Notice)
Posted in Good Times for Lenders, Market Trends, Workout IssuesThis year comes to an end with a commercial real estate market looking different than 2009. Sure, defaults on commercial mortgage loans are mounting, and investors remain concerned. Yet, at the same time, the public credit market (CMBS) is slowly making a come-back. In the midst of this change, there are good lessons to be learned –… Continue Reading
Capital Market Three-Step Needed: Risk Retention Now; Transparency Next; Finally Valuation
Posted in Good Times for Lenders, Market Trends, Technology (including Green Buildings)The focus on risk retention under the Dodd-Frank Act and by industry regulators and committees is well-deserved. However, in order for the public capital markets to fully bring liquidity into the commercial real estate industry, risk retention merely is the first step in a three-part move. The liquidity dance will not be complete until… Continue Reading
NAIC Appoints Blackrock Solutions For Modeling Of CMBS Holdings (Stepford Wives Revisited?)
Posted in Market Trends, Tough Times for LendersThe NAIC is the association of state insurance regulators. It acts as a guide to state insurance commissioners, who in turn regulate insurance companies and their respective balance sheets and investments. Last year, the NAIC hired PIMCO to assist in the risk-based capital ("RBC") modeling of residential mortgage-backed securities (and accompanying solvency requirements). Below I… Continue Reading
Investment Grade Bondholders Have Tough Questions for CMBS 2.0 (Including Proposed SEC Disclosure Rule)
Posted in Good Times for Lenders, Market TrendsIn an earlier posting on CRE finance reform and market trends, I stepped back and asked the all-important questions: What does all this mean? What is the big-picture? Where is this going? I offered up four perspectives, with these as the first two – 1. The Good: the “return” of the unregulated lender 2. The… Continue Reading
CMBS 2.0 & Financial Reform: Industry Comments on FDIC ‘Safe Harbor’ Provisions For Securitization
Posted in Good Times for Lenders, Market TrendsYesterday, the Commercial Mortgage Securities Association (CMSA) submitted a comment letter [download] to the FDIC concerning the FDIC’s ‘Safe Harbor’ rule [down load the FDIC's Advanced Notice of Proposed Rulemaking] covering the securitization of commercial real estate loans. Of course, the CMSA is not the only industry organization to comment on the FDIC’s proposed rule. For… Continue Reading
Capital Market Scorecard: Financial Services Committee hearing – Covered Bonds testimony
Posted in Good Times for Lenders, Market TrendsThe CMSA has published the text of the testimony by Christopher Hoeffel, from his appearance yesterday before the US House Financial Services Committee. As noted in my posting earlier this week (link), the Committee is investigating the use of the "covered bond" product as one tool to revive the CRE capital markets (and solve some of… Continue Reading
Capital Market Scorecard: Hope on the Horizon – Congressional Hearings on Covered Bonds
Posted in Good Times for Lenders, Market TrendsMore on my series commenting on the CMBS loan market and the broader capital markets for commercial real estate . . . . Previously, we’ve brought to your attention a type of commercial real estate debt structure that HAS worked in the EU (for hundreds of years), and it HAS been tried at least twice in… Continue Reading
Uncertain Waters: Scorecard on the CMBS Market
Posted in Market Trends, Tough Times for LendersBy now you should be well aware of this "bad" fact stemming from failure or lock-down of the CMBS loan market: Between now and the end of 2012, more than $600 billion CRE loans will mature in EXCESS of the average 3-year historical gross originations from all non-commercial CRE lenders. In other words, in the absence of a… Continue Reading
Steering Through CMBS Waters: A Primer for Troubled Loans
Posted in 1 Guest Writers, Tough Times for LendersArticle Co-Author: Courtney D. Bristow, Winstead PC It’s Monday morning and you’re getting ready for work with the news on the TV in the background. By now, you’re practically immune to the daily dose of doom and gloom that has become business news, particularly with regard to real estate and mortgage-backed securities. So you’re not… Continue Reading
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
Into the Looking Glass: What are the lawyers focusing on at the ACMA meeting?
Posted in Good Times for Lenders, Market Trends, Tough Times for Lenders, Training, Workout IssuesFor the next couple of days, I’ll be attending the annual meeting of the American College of Mortgage Attorneys (ACMA). Members of ACMA are a select group of in-house and outside counsel, who are recognized as leaders in commercial real estate finance. OK, I know: You’re rolling your eyes as your internal big screen pans a view… Continue Reading
Understanding the Primary Duties of CMBS Loan Servicers to B-Note Holders Under a Co-Lender Agreement (Part 2 of 2)
Posted in 1 Guest Writers, Tough Times for Lenders, Workout IssuesGuest Writer - Christopher T. Nixon, Winstead PC In part 1, I covered the relationship between the loan servicer and the B-note holder, and the role of the B-note holder in making decisions about the loan. This posting addresses a situation where that the B-note holder no longer can participate in decisions, and the replacement of the… Continue Reading
Understanding the Primary Duties of CMBS Loan Servicers to B-Note Holders Under a Co-Lender Agreement (Part 1 of 2)
Posted in 1 Guest Writers, Tough Times for Lenders, Workout IssuesGuest Writer – Christopher T. Nixon, Winstead PC CMBS loan servicers have duties to a myriad of parties in the servicing of a CMBS loan, including the REMIC trust, the bondholders, and the borrower. With respect to an A/B loan, a CMBS loan servicer also has certain duties to the B-note holder pursuant to the… Continue Reading
Watch for Change at the State House: Note Registration Before Foreclosure?
Posted in Market Trends, Remedies, Tough Times for LendersMore on our "Watch For Change (at the state house)" series (prior postings on new business tax; new foreclosure fee) . . . . I suspect that many state and local authorities soon will be requiring lenders to register a loan BEFORE the loan is foreclosed. Yes, another foreclosure trip wire. Recently, a representative of… Continue Reading
Into the Looking Glass: Reports on Market Trends from the 2009 MBA-CREF Convention
Posted in Good Times for Lenders, Market Trends, Tough Times for LendersIn October 2008, Brenda Brown, Keith Mullen and Lou Strawn authored a series of posts while attending a real estate conference in Munich, and then from London as we returned to the United States. The series chronicled the European perspective as the economic crisis first rattled around the world (Day 1, Day 2, Day 3,… Continue Reading
From Across the Pond: The European View
Posted in Good Times for Lenders, Market Trends, Tough Times for LendersKeith Mullen and Lou Strawn head to Europe Next week, we will be in Munich, Germany and then London, England visiting clients, and meeting with investors, lenders, title companies, investment bankers, mortgage bankers and fund advisors — almost the entire spectrum of the "players" in the international real estate space. We think that we know… Continue Reading