In some parts of the country, a recovering local economy means the special asset (or problem loan) groups are reducing staff, as loan production groups come back to life. Leaving the special asset group under-staffed could be a mistake if the staff is not able to properly complete basic foreclosure tasks. One basic task is… Continue Reading
Category Archives: Training
Subscribe to Training RSS FeedWhat Law to “Choose” in Commercial Mortgage Loan Docs? Simple.
Posted in 1 Guest Writers, Good Times for Lenders, Training, Workout IssuesProvisions in commercial mortgage loan documents, where a particular state law is “selected” as the governing law, can drive a deal into a ditch, and take a good (or growing) lending relationship into the emergency room. In many situations, this topic is a good example of over-thinking, and perhaps over-lawyering. Simply stated, which of these two… Continue Reading
Hide and Seek: Service of Process as a New Loan Provision
Posted in Good Times for Lenders, Remedies, Training, Workout IssuesLenders are refreshing their mortgage loan documents with provisions based on the “lessons learned” during the recent (continuing?) economic experience. One change is to add a service of process provision. The change is based on this basic lesson learned: when the tough times hit, borrowers and guarantors sometimes are hard to find. A few simply… Continue Reading
Email Killing You? Survival Tips for Managing Email
Posted in Articles, Technology (including Green Buildings), TrainingEmail is killing us all. At our desks. Following us. 24/7. To survive, I try to manage myself and my e-mail with this approach: watch the clock use folders automatically keep copies of sent e-mail in correct folder when typing is talking . . . talk Each of us needs to improve our use of… Continue Reading
Construction to Permanent Loan on the Return: Tips on Due Diligence and Loan Documents (part 1)
Posted in Good Times for Lenders, Market Trends, TrainingCredit seems to be more available for commercial real estate. For example, I know of one commercial real estate lender working on a construction to permanent loan program. This type of lending blends two types of loans: a construction loan to build the project and a term loan to finance it once the project hits… Continue Reading
Lender or Servicer Looking to Follow Litigation Trends & Cases? Follow the “Financial Appellate Voice”
Posted in Good Times for Lenders, Tough Times for Lenders, TrainingDavid Johnson and Joe Regan are sharing their knowledge and experience in the Financial Appellate Voice, a new blog focusing on litigation involving the financial services industry in Texas. They start strong with a webcast and posts on these topics (these are just a few that jumped out at me): a webcast with an update… Continue Reading
Workout Tips For Lenders: A Quick “Wish List” (check this list)
Posted in Tough Times for Lenders, Training, Workout IssuesIt’s always good to have the “big picture” in one hand as you deal with the troubled loan with your other hand. Previously, we’ve touched on preliminary tips and steps, and even some tips on the “art” of dealing with a mucked up deal and with “less than friendly” people – and don’t overlook the… Continue Reading
Lenders & Leases: Spotting a “Troubled” Tenant – the need for “forensic” leasing
Posted in Good Times for Lenders, Tough Times for Lenders, TrainingWhether you’re a loan originator, or a loan servicer, reviewing a commercial lease (or amendments) becomes more challenging in tough real estate markets simply because there are more tenants in distress – and you need to identify them. So, are there lease provisions that could indicate a distressed tenant? Below is a short list of… Continue Reading
Minority Owner Exiting an Under Performing Deal? Don’t Need Lender Approval? Right . . . Wrong (or “oops”)
Posted in Guaranty Issues, Tough Times for Lenders, TrainingPeople don’t “connect” their ownership (even a minority ownership) with their liability under bad-boy or non-recourse carveout agreements (whether in the form of an indemnity, or as a guaranty). So, minority owners often transfer ownership without getting a release from bad boy liability . It could be a costly mistake. With deals under water… Continue Reading
When is Insurance Really NOT Insurance? When the “agent” really is NOT an agent
Posted in Good Times for Lenders, Insurance & Environmental Risks, TrainingThis seems to be insurance week for me. Later this week, I’ll jump into a recent court case that recently hit the headlines. Today, however, I received an e-mail warning of the POSSIBLE unauthorized issuance of property insurance polices by “an unathorized third party purporting to represent the insurers listed below and not to policies properly issued by the… Continue Reading
Buying Commercial Mortgage Loans isn’t Rocket Science? Right. Unless You Overlook the . . .
Posted in FAQs, Tough Times for Lenders, TrainingBuying a commercial mortgage loan is NOT rocket science. There are, however, some very basic aspects of a mortgage loan that should be included or addressed in the purchase of the loan. I list a few of them below. But before we get to them, ask yourself the question that scientists ask all the time: “what… Continue Reading
Enforceability of Due-on-Sale Clauses: The Case for Collective Amnesia
Posted in Good Times for Lenders, Market Trends, TrainingI’ll admit it: I’m old and getting older. This hit me earlier this week as I argued with a lawyer about the enforceability of due-on-sale clauses in commercial mortgages. The conversations boggled my mind, because the debate was “settled” in 1982 when Garn-St. Germain (citation below) was enacted – and the debate ended: due-on-sale clauses… Continue Reading
Why the Co-lender Train Wreck? Lenders Used Wrong Agreement
Posted in Good Times for Lenders, Tough Times for Lenders, Training, Workout IssuesTrain wrecks draw a crowd. Look at this old film from the 1913 California State Fair (click the text). 1913 Train Wreck Unfortunately, many co-lender structures (secured by distressed commercial real estate) look exactly like this train wreck…. Continue Reading
It’s “That Time”: What are the Most Important Terms of a Guaranty?
Posted in Guaranty Issues, TrainingThe holiday season is behind us, but one of my favorite songs still resonates: "It’s that time of year, when the . . . ." Holiday season. Fireplace. Home. But it’s back to work, where . . . after being back at the law firm for several weeks, clearly we’re at "that time" of… Continue Reading
Lessons Learned: More Tips on Topics to be Included in Loan Documents (& Modifications)
Posted in Market Trends, Training, Workout IssuesPeriodically I touch on topics that could be, or should be, covered in loan documents – either when the loan is initially closed and funded, or when the terms of the loan are revisited during an extension or a restructure (collection of blog posts on "lessons learned" [it is a long list]). Here are… Continue Reading
Year End Grab Bag: Change & 3+ Years of TT4L Point to . . . Change
Posted in Market Trends, TrainingA friend once comforted and challenged me with these words: "Change is our FRIEND." The words of wisdom were offered up to me as I wrapped up a 90 minute program for first, second and third grade kids . 140 of them were sitting in chairs, looking at me and waiting for Mom or Dad to… Continue Reading
More Trouble: Will Record Online Sale Numbers Transform Sticks & Bricks Retailing in 2012? I say “yes”
Posted in Market Trends, Technology (including Green Buildings), Training, Workout Issues2012 should be the year when online sales broadly impacts "how" retailers view and use their "physical" stores. This will impact both the owners AND the lenders. Record online sales point to the need (RIGHT NOW) to take a different approach in reviewing and approving retail leases – which for lenders with shopping center and… Continue Reading
Thanksgiving Reflections: ACC Meeting brings 21 Good “Ideas” – but 1 is GREAT!
Posted in Good Times for Lenders, Technology (including Green Buildings), Tough Times for Lenders, TrainingThanksgiving week is a good time to take a breath, relax and reflect – which is what I offer up here: It also brings to end the industry meeting circuit for 2011. Fred Krebs has a nice posting on the Association of Corporate Counsel blog. As his takeaway from the ’11 annual meeting of ACC, his… Continue Reading
Leases, Lenders & Letters of Credit: Lenders Taking New Approaches With Tenant Letters of Credit (lessons learned)
Posted in Good Times for Lenders, Tough Times for Lenders, Training, Workout IssuesWe know commercial real estate is all about the rents – and the credit of the tenant, which some times is enhanced by the tenant giving the landlord a letter of credit. David Staas and Michael Thomas recently clued me in on several lessons learned by commercial mortgage lenders, on the topic of letters of… Continue Reading
Lessons Learned: Future Loan Documents Should Cover These Topics (part ___)
Posted in Good Times for Lenders, Training, Workout IssuesGame #6 of the World Series (my Rangers v the now World Champion St. Louis Cardinals) gives the Rangers some painful pointers on "where" to improve for 2012: find someone, anyone, who can get a third strike – for the last out in an inning, for a win of the game, for a World Series… Continue Reading
Baseball Reflects Life: Guidance on Calling it Fair or Foul in Dealing with Distressed Loans
Posted in Tough Times for Lenders, Training, Workout IssuesWith Game #6 of the 2011 World Series (Texas Rangers v St. Louis Cardinals) scheduled to play tonight after a rain-delay day, baseball is on my mind. As we’ve seen in Games 1-5, baseball is a game of – inches: as in Cruz catching a Pujols fly ball with his back to the outfield fence… Continue Reading
Golf Course Loans in Default: Tough Topics When Playing in the Rough
Posted in Tough Times for Lenders, Training, Workout IssuesLoans secured by a golf course present some very unique problems when the loan is in distress. At the annual meeting of the American College of Mortgage Attorneys, Nancy Little, Bessie Giannopulos and Robyn Nordin Stowell gave an excellent presentation on this topic. I’ve added some of their topics to my list of hazards… Continue Reading
Better, Faster, Cheaper? Improved Uses of Technology is the Key
Posted in Tough Times for Lenders, TrainingEach of us knows and suffers under this work place mantra: we’re pushed to be better, faster and cheaper. So, what magic formula, or pixie dust, frees us from this bondage? Technology. Smarter uses of technology. At the annual meeting of the American College of Mortgage Attorneys, I’ll be discussing receiverships on a panel (which will cover… Continue Reading
Tips on Negotiation Agreements: What Information Should You Want?
Posted in Tough Times for Lenders, TrainingInformation. Information. Information. Lenders and servicers want it (they already are stuck with the "location, location, location"). Borrowers in distress might not want to furnish it. What is a lender or servicer to do? How can they get it? Answer: include delivery of the information as part of the discussion or negotiation letter. Here is… Continue Reading