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: REMIC
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
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 one
Posted in Good Times for Lenders, Market Trends, Single Purpose Entity, Tough Times for Lenders, Training, Workout IssuesThe first day of the 2009 MBA’s Commercial/Multifamily Servicing and Technology conference has ended. It has been a long day, filled with attending panel presentations and meetings with people over meals, in the halls and at receptions. It started at a 7:30 breakfast and ended @ 10p (when I refused to join a group that headed toward… Continue Reading
Into the Looking Glass: Reports from the 2009 MBA Commercial\Multifamily Servicing & Technology Conference
Posted in Good Times for Lenders, Market Trends, Tax Issues, Tough Times for LendersOver the last 8 months, we’ve blogged in October from the EU, where we attended a real estate convention and visited with several clients (link to last day), and then in February from the MBA-CREF convention in San Diego (link to last day), This week, we’re attending the MBA’s Servicing & Technology Conference in New… 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): 2009 MBA-CREF – Workouts, Special Servicing and Back to the Basics
Posted in Good Times for Lenders, Market Trends, 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) It is no surprise that the convention is markedly different from previous years. Everything has changed (unfortunately that’s almost NOT a terrible understatement): lenders have a new focus (and those with "real"… 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