In a sign that the troublesome class of 2007 loans has not yet made the grade, the CMBS delinquency rate hit a new high in May after steadily creeping up over the last three months. New research from Trepp shows that the delinquency rate is now 10.04%, up 24 basis points (bp) from last month (9.8%) … [Read more...] about 5.30.12: Legacy CMBS Delinquency Rates Continue to Rise
Archives for May 2012
5.22.12: 504 Poolers Begin to Shut Origination Window
Lenders that are originating SBA 504 loans (both in the construction/acquisition and refinance program) purely for pooling the first mortgage loan for sale in the secondary market are beginning to shut down those operations in anticipation of the expiration of the program on September 23, 2012. … [Read more...] about 5.22.12: 504 Poolers Begin to Shut Origination Window
5.18.12: CMBS Conduit Loan Rates Decline with Treasury Rally
CMBS conduit loan rates have fallen to the lowest levels since the restart of CMBS lending in 2010. Interest rates on CMBS conduit loans are set based on a spread over the libor swap rate corresponding to the loan term. Recently, libor swap rates have declined in tandem with the 10-year treasury … [Read more...] about 5.18.12: CMBS Conduit Loan Rates Decline with Treasury Rally
5.14.12: Rates on 5-Year CMBS Conduit Loans Worse Than 10-Year Deals
Rates on 5-year CMBS conduit loans are higher than loans with a 10-year term, and the difference between the two appears to be increasing. Normally in commercial lending, when the 5-year Treasury or libor swap rate is lower than the 10-year Treasury or libor swap rate, loan rates on deals with a … [Read more...] about 5.14.12: Rates on 5-Year CMBS Conduit Loans Worse Than 10-Year Deals
5.7.12: Cash Management and CMBS Conduit Loans…Not Perfect Together: Part II
A recent post of ours outlined the insistence on cash management accounts for nearly all CMBS conduit loans. In summary, cash management accounts are set up for each transaction as a bank account in the name of both the borrower and the lender, but it’s primarily under the borrower’s control. … [Read more...] about 5.7.12: Cash Management and CMBS Conduit Loans…Not Perfect Together: Part II
5.4.12: Mahesh (Mike) Patel Wins iPad 2 Drawing at AAHOA Show
Hotel owner Mahesh (Mike) Patel won a new 32GB iPad 2 at the ValueXpress booth at the Asian-American Hotel Owners (AAHOA) Convention and Trade Show in Atlanta, GA last week. When we first called Mr. Patel and told him he’d won the iPad, he responded, “No, I already received the iPad that I won.” We … [Read more...] about 5.4.12: Mahesh (Mike) Patel Wins iPad 2 Drawing at AAHOA Show
5.1.12: Opportunities & Challenges for Portfolio Lenders and CMBS
On May 1st CRE Finance Council sponsored a seminar on the prospects for commercial real estate lending in the near and longer term. Panelists were a mix of CMBS conduit pros and insurance company lenders; they included Jon Martin from Wells Fargo, representing both a portfolio bank lender and CMBS … [Read more...] about 5.1.12: Opportunities & Challenges for Portfolio Lenders and CMBS