Rick Jones at Crunched Credit has a thoughtful piece where he offers a hopeful picture for commercial real estate debt markets in 2012. I can’t go there. On several basic points he’s overly optimistic (his view in bold). My view is this: Unemployment (6-7%): for the next 3-4 years, the new normal is +8% –… Continue Reading
Tag Archives: transparency
MERS Update – Legal (MERS surges), Political (it’s stick), Transparency (kudos to MERS)
Posted in Market Trends, Technology (including Green Buildings)I’ve been following the MERS saga for several years now (prior postings for background). My bottom line: we need a Federal solution. This one-state-at-a-time approach is a painful process – and it will negatively impact the iquidity needed in our mortgage finance markets If you’re just now dropping in on this topic, MERS is an… Continue Reading
Capital Markets Heading Where? Comments From the BisNow Dallas Capital Markets Summit
Posted in Good Times for Lenders, Market TrendsYesterday, I attended the BisNow Dallas Capital Markets Summit. My partner Chris Nixon chaired the debt panel in front of a crowed that looked to be 400+. The room was packed (forcing the hotel staff to bring in extra chairs). The focus was on "where are we heading on commercial real estate?" You can weigh in… Continue Reading
1st Q Review: List of Your “Hot” TT4L Topics & Downloads
Posted in Articles, Good Times for Lenders, Market Trends, Tough Times for Lenders, Workout IssuesSo what were the – "hottest" topics read here on TT4L during the first Q of 2011? the items most popular "downloads" of materials available for download on TT4L? The list (and links) below are the most widely read blog posts from ToughTimesForLenders (TT4L) from 1st Q of 2011. During Q1, we focused on a wide… Continue Reading
Lessons Learned: New Reporting Requirements in Loan Documents and a Call for Transparency
Posted in Good Times for Lenders, Technology (including Green Buildings)Earlier this week, another member of ACMA called me to ask if I’d be on a panel (at the ACMA fall conference) that will cover "lessons learned for loan documents." It was an easy "yes" for me – because I’ve covered parts of that list here (new non-recourse events); and as we work on… Continue Reading
’11 MBA-CREF Convention Recap: New Liquidity? Return to CMBS Dominance?
Posted in Good Times for Lenders, Market Trends, Tough Times for LendersPerhaps the most important “message” from this year’s MBA-CREF convention is this question: Will we (finally) see increased liquidity in the commercial real estate finance sector in ’11? The convention placed a unanimous “yes” to the question, based upon the “return” of the CMBS lending product – as evidenced by recent securitizations, the large number… Continue Reading
’11 MBA-CREF Convention Day #2: Observations & Comments On Technology & Market Share
Posted in Good Times for Lenders, Market Trends, Single Purpose Entity, Technology (including Green Buildings), Tough Times for LendersBelow are some observations and comments collected by me from formal and informal meetings, and random conversations though lunch on this second day of the 2011MBA-CREF Convention. They do reflect my "coming up roses" word picture for ’11: we’ll have more roses blooming in the commercial real estate finance garden, but in ’11 we’ll still… Continue Reading
CMBS 2.0 & Loan Level Transparency: Apartment Landlords Take Finger Out of the Information Dike!
Posted in Good Times for Lenders, Market Trends, Technology (including Green Buildings)More on the trend pushing for loan level transparency, which I believe is a needed second step to create a deep and vibrant CMBS market . . . . one in which investors have needed information and thus can more accurately evaluate risk, and consequently commit more capital to the product – and to remain committed…. Continue Reading
Capital Market 3 Step: Does Fitch’s announcement point to meaningful loan level standards?
Posted in Good Times for Lenders, Market TrendsAt least one rating agency (Fitch) has announced that it will be looking more closely at loan level valuation. HousingWire reports that Fitch "plans to look more closely at property valuations and loss-coverage multiples when assigning ratings for fixed-rate commercial mortgage-backed securities transactions." My assumption is that this is at securitization or pooling – and… 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
Dodd Frank Act Watch: Proposed SEC Rule Points To Greater Transparency
Posted in Good Times for Lenders, Market Trends, Technology (including Green Buildings), Tough Times for LendersMany provisions of the Dodd Frank Act are what I call "delegated legislation" – where Congress authorizes Federal Regulators to craft regulations based upon broad principals or statements contained in the Act. (Here are two helpful summaries; and here is a time line on regulatory implementation of rules covering commercial real estate) One topic that… Continue Reading
Securitization Reform and “New” Bondholder Control of Special Servicing: Pathways To CMBS 2.0 & Needed Liquidity?
Posted in Good Times for Lenders, Market TrendsOne of the factors dampening the recovery in the commercial real estate markets is the lack of liquidity. The problem is immense: without liquidity, buyers of distressed debt and foreclosed real estate do not have access to the financing that makes the investment attractive to them; and maturity defaults become a growing reality. Recent… Continue Reading
MBA Servicing & Technology Conference: New Uses of Technology – Outside Counsel As A Source For Legal Data And As A Free 24/7 Training Resource
Posted in Good Times for Lenders, Market Trends, Technology (including Green Buildings)(Blogging from or about the MBA Servicing & Technology Conference . . . .) (Day One blog) (Day Two blog) On the first day of the conference, I had the pleasure of being on a panel with Bill Frazer (CBRE Capital Markets), Steven Bean (Situs Realty Services, Inc) and Catherine Rodewald (Prudential Mortgage Capital Company). Each is a leader… Continue Reading
Examples Of How Technology Is Changing Special Servicing
Posted in Market Trends, Technology (including Green Buildings)As I’ve noted in in a prior posting, the informed borrower might have some angst about using technology for the public disclosure of loan level information – although (for example) you will be amazed at the amount of information available on CoStar and other databases built by the brokerage community. But from the perspective of the lender… Continue Reading
Borrowers Have Tough Questions For The New CMBS 2.0
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
Rating Agency Challenges: Wells Letter For Moody’s; New SEC Rule Addresses Conflicts of Interest; Post-Employment Limitations; and Loan Level Focus & Data Needed
Posted in Good Times for Lenders, Market Trends, Technology (including Green Buildings)Rating Agencies continue to be under a microscope. Here are two recent events, and two points that should be of interest: Moody’s Receives a Wells Letter Information Sharing Under New SEC Rule 17g-5 Addresses Conflicts of Interest Needed: Post-Employment Limitations On Rating Agency Employees Deserve Consideration; and Needed: Rating Agency Focus On Loan Level Fundamentals (Using… Continue Reading
Transparency Coming To Commercial Real Estate: Proposed SEC Rule For CMBS Means ‘Private Is The New Public’
Posted in Good Times for Lenders, Market Trends, Technology (including Green Buildings)In an earlier post, I commented on a proposed SEC rule that will require the disclosure of specific loan-level information as data, at CMBS securitization and then during the life of the CMBS pool. In addition, the data will be needed to "support" certain certifications required to be delivered as part of the CMBS securitization process…. 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
Senate Banking Committee Releases Financial Reform Legislation (Restoring American Financial Stability Act of 2010): CMSA Summary
Posted in Good Times for Lenders, Market TrendsOn Monday, March 15, the Senate Banking Committee released it’s draft of the "Restoring American Financial Stability Act of 2010" [click name to download it]. It is long: 1336 pages. And no surprise at this: it is complicated. Provisions include creation of a consumer protection watchdog housed in the Federal Reserve; creation of a nine-member Financial… Continue Reading
CMSA & Key Industry Groups Push Congress To Avoid “Looming Commercial Real Estate Crisis”
Posted in Good Times for Lenders, Market TrendsAs I noted previously [link], the mid-term elections significantly limit the time period for Congress to pass a meaningful financial reform bill. The “window” for this closes in August – five months from now – when the fall election campaigns kick into high gear. With this short-course in mind, the CMSA and other key industry groups… Continue Reading
Capital Market Scorecard: Day 1 Summary from the CMSA January Conference
Posted in Good Times for Lenders, Market Trends(When we attend industry conferences, we bring you along by blogging on topics of interest to us, with our comments of course. This is the second in a series of posting relating to, and from, the 2010 CMSA January Conference. [Link to first posting] Our blogs on other conferences are found [i] under the "Market Trends" category… Continue Reading