A signature of ValueXpress CMBS conduit deals is the weekly conference call. At the beginning of each transaction, a working party list including borrower and borrower’s counsel and lender’s counsel and lender’s underwriting team is distributed and a set weekly conference call is scheduled. The initial kickoff call is usually one to two days after the borrower’s application is received with the transaction deposit.
“What is great about these weekly calls is they get all parties on the same page in terms of the closing time frame, which at 35-45 days is extremely quick,” commented Michael D. Sneden, Executive Vice President at ValueXpress. “Lender’s counsel lays out the closing checklist items and provides borrower’s counsel with their marching orders, while Jim Brett, Senior Underwriter at ValueXpress, is usually way out in front on the property diligence.”
“The call is really a head’s up for borrower’s counsel not to let the schedule slip,” commented Jim. “Often the property diligence side of the transaction is completed in advance of legal work, and the weekly call keeps borrower’s counsel on their toes, as they really do not want to be embarrassed on a weekly call by not showing any progress on the legal side of the transaction with their client on the phone,” notes Jim.
“We really only started this process with the restart of CMBS in 2010, and as I look at my pipeline, we are closing deals 10-15 days faster than pre-2007 CMBS deals, which is a benefit to our borrowers with tight closing time frames,” said Sneden.