Most CMBS conduit loans have a protection for lenders in the event property cash flow decreases significantly during the loan term. The protection is in the form of a cash management account that is in the name of the lender and the borrower. When the property is performing in accordance with the … [Read more...] about 10.30.15: Don’t Let This Trigger Hurt You
Archives for October 2015
Regulation AB, a new regulation adopted by the Securities and Exchange Commission (SEC) and effective November 24, may have an adverse effect on small CMBS lenders. Regulation AB requires a senior CMBS executive employed by the lead lender in the securitization to assume personal liability for … [Read more...] about 10.26.15: New Regulations May Affect Small CMBS Lenders
In CMBS conduit lending, all lenders require sponsors and their borrowing entities to complete a disclosure form. Typical questions include whether the sponsor has ever defaulted on a commercial loan, been involved in litigation, filed for bankruptcy, or been convicted of a crime. Some sponsors … [Read more...] about 10.18.15: Be Truthful in Your Disclosures Please
Charley Lobetti, a 20-year veteran in commercial real estate lending, joined ValueXpress effective October 1. Charley is primarily responsible for commercial loan originations focused on CMBS conduit loans in what is known as the East-South-Central United States, including the states surrounding … [Read more...] about 10.16.15: Charley Lobetti Joins ValueXpress
About $5.62 billion of loans in commercial mortgage-backed securities (CMBS) could be adversely affected by recent record flooding in South Carolina. President Obama declared a state of emergency covering the entire state and ordered federal aid to help the recovery, according Morningstar Credit … [Read more...] about 10.12.15: Will Flooding Affect CMBS Conduit Loans in South Carolina?
Unlike many commercial loan programs, CMBS conduit loans can provide for partial interest-only loan payments as well as full-term, interest-only loan payments for lower leverage loans. This structure provides for higher cash flow after debt service to the sponsor, and it can be particularly useful … [Read more...] about 10.7.15: Interest-Only Periods Can Be Helpful in CMBS Conduit Loans
All CMBS conduit loans require ALTA/ACSM Land Title Surveys, the standards of which are created by the American Land Title Association and National Society of Professional Surveyors. These standards, which provide for the minimum details that must be included on survey drawings for a property to be … [Read more...] about 10.2.15: Keep Those Old Surveys Handy