Over the years, environmental issues requiring mitigation before a CMBS conduit loan can close have declined. However, one issue related to dry cleaners still surfaces from time to time. Properties identified as having a current or former dry cleaner that performs or historically performed “on-site” … [Read more...] about 5.25.18: Dry Cleaners Can Be an Environmental Concern in CMBS
4.24.18: Kroll to Track CMBS “Loans of Concern”
Kroll Bond Rating Agency (KBRA) has created a monthly index to track CMBS loans that it believes are at risk of default. The index tracks not only loans that are already delinquent or in default, but more important, loans that face a high risk of default in the future. These loans, known as … [Read more...] about 4.24.18: Kroll to Track CMBS “Loans of Concern”
7.29.14: Predatory ADA Litigation of Major Concern for Hoteliers
We recently closed a $5-million hotel loan secured by a Hampton Inn in Florida. During property diligence, we noticed a $25,000 legal fee under the “professional expense” category on the profit and loss statement. Since we figured it was a one-time expense, we wanted to back it out of the … [Read more...] about 7.29.14: Predatory ADA Litigation of Major Concern for Hoteliers
6.30.11: Up-Front Costs Concern Small Balance Conduit Borrowers
Small balance ($2-$10 million) CMBS conduit borrowers no longer enjoy programs that feature fixed transaction costs for third-party reports and lender’s legal charges that are a relative bargain. Those programs, in effect prior to the 2008 CMBS conduit loan market meltdown, no longer exist. Today’s … [Read more...] about 6.30.11: Up-Front Costs Concern Small Balance Conduit Borrowers
2.1.10: FHA Changes to Multifamily Underwriting Draw Industry Concern
FHA multifamily lenders expressed concern after listening to HUD's proposed guidelines to tighten its underwriting. At the Mortgage Bankers Association's Commercial Real Estate Finance/Multifamily Housing Convention & Expo, Carol Galante, deputy assistant secretary for multifamily housing at … [Read more...] about 2.1.10: FHA Changes to Multifamily Underwriting Draw Industry Concern
