We recently received an email from a CMBS conduit loan borrower who wanted us to forward important information to our clients to protect them. The client is seeking a CMBS conduit loan in an oil-related market for a limited service hotel and received a quote for a higher-than-market LTV (most … [Read more...] about 1.23.15: Please Don’t Pay Up-Front Fees to Brokers on CMBS Conduit Loans

Michael D. Sneden, Executive Vice President of ValueXpress, will be representing the firm at the Mortgage Bankers Association Commercial Real Estate Finance (CREF)/Multifamily Housing Convention and Expo at the Manchester Grand Hyatt in San Diego, California February 1-4, 2015. The convention is … [Read more...] about 1.19.15: Meet Me at the MBA in San Diego, CA

In its first enforcement action against a major rating agency, the Securities and Exchange Commission (SEC) accused S&P of fraudulent misconduct, saying S&P loosened standards to drum up business in recent years. The agreement requires S&P to pay more than $58 million to the SEC, $12 … [Read more...] about 1.13.15: S&P Gets a Time Out

ValueXpress completed 35 CMBS conduit loan transactions in 2014 with a principal balance of over $225 million. Average loan size approximated $7 million. Hospitality loans were most prevalent, but transactions were completed for every CMBS conduit loan asset class -- multifamily, retail, office, … [Read more...] about 1.9.15: Another Solid Year for ValueXpress

On December 12, UBS, Deutsche Bank, CCRE, KeyBank and others priced the benchmark AAA-rated class of a $825-million multi-borrower CMBS conduit offering at 90 basis points (bp) over swaps, above the upper end of the 85-87 bp range that was prevalent in November. On the same day, Ladder Capital, … [Read more...] about 1.6.15: Market Awaits New CMBS Deals to Clarify Pricing

With relatively low interest rates, strong market appetite for CMBS securities and the beginning of a period of high CMBS conduit loan maturities, originators are predicting strong CMBS conduit loan growth in 2015. Forecasts are for approximately $125 billion in conduit lending in the United States … [Read more...] about 1.1.15: Industry Pros Bullish on 2015 CMBS Originations

CMBS conduit loan originators are concerned about lower oil prices negatively affecting room demand for hotel properties in markets where demand is highly dependent on robust oil exploration and production activities. While the impact of declining oil prices should affect markets differently, right … [Read more...] about 12.26.14: Caution Flag Out for Hotels in Oil-Related Markets

One of our CMBS conduit lending partners provides us with a regular forecast of its views on the economy and its expected impact on CMBS conduit lending. We have completed close to $500 million in transactions since the restart of CMBS conduit lending in 2010 with this partner, so we like to share … [Read more...] about 12.21.14: Economic Outlook and Product Offering Update

The significant amount of CMBS conduit loan maturities in 2015-2017 will provide an unprecedented opportunity for CMBS conduit loan mortgage brokers to increase their origination volume in the upcoming years (see our 12.12.14 post), but not without some challenges. “I went back to Jim Brett, our … [Read more...] about 12.17.14: More First Mortgage/Mezzanine Combos Expected in 2015-2017

The significant amount of CMBS conduit loan maturities in 2015-2017 will provide an unprecedented opportunity for CMBS conduit loan mortgage brokers to increase their origination volume in the upcoming years. “Recently, Jim Brett, our CMBS bond analyst and head of CMBS conduit loan underwriting at … [Read more...] about 12.12.14: Mountain of CMBS Conduit Loan Maturities Presents Origination Opportunity