Article 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 overly concerned when you hear the anchor say, “Vital signs are dangerously low in the commercial mortgage-backed securities market. We’re suffering from a trifecta of decimated bond prices, weakening mortgage performance and drastically reduced loan originations. The threefold combination has pummeled portfolio values and deprived borrowers of a primary source of commercial real estate financing.”1 As you turn off the television and head out the door, you find solace in the fact that you work for a public healthcare company and not a financial services firm.
Your phone is ringing as you walk into your office. It’s your CFO explaining that a $5 million loan on one of your office buildings in Michigan is maturing in three months. He asks you to help the company’s internal business unit that is desperately searching for new financing while, at the same time, communicating with the commercial mortgage-backed securities (CMBS) loan servicer who manages the loan. Did he just say CMBS? Loan servicer? Find financing upon maturity? What do you need to know about the CMBS industry and its participants to navigate through this mortgage mess that just fell into your lap? Click here to read the entire article.
Article published in the September issue of American Corporate Counsel (ACC) Docket, the award-winning journal of the Association of Corporate Counsel.