Lower underwriting standards and competition for CMBS conduit loan are helping borrowers in many ways to lower transaction costs. Here are some interesting trends. - Fixed-fee CMBS conduit loan programs (see our 6.13.14 news comment "ValueXpress to Offer Fixed-Fee CMBS Program") feature streamlined … [Read more...] about 6.4.14: Relaxed CMBS Conduit Underwriting Benefits Borrowers
5.21.14: Dicier CMBS Conduit Loans Result in More Subordination
In response to eroding collateral quality, rating agencies recently have been boosting credit-enhancement requirements -- with the result that subordination levels on junior triple-A CMBS have moved closer to the standard 30% threshold for super-senior AAA-rated CMBS. On May 21st, Deutsche Bank and … [Read more...] about 5.21.14: Dicier CMBS Conduit Loans Result in More Subordination
AAHOA Alert! 4.30.14: CMBS Conduit Loan Rates for Hotels Fall Below 5%
Lender competition for CMBS conduit loans for hotels, particularly limited-service hotels owned by AAHOA members, is contributing to rapidly declining interest rates for borrowers. In addition, small balance borrowers ($3 million-$10 million) are enjoying low interest rates that were previously … [Read more...] about AAHOA Alert! 4.30.14: CMBS Conduit Loan Rates for Hotels Fall Below 5%
AAHOA Alert! 4.28.14: CMBS Conduit Loans Available in Small Markets
ValueXpress can obtain CMBS conduit loans for AAHOA members who own limited and full-service hotels in small markets. “Traditionally, CMBS conduit lenders do not like small markets and will not make hotel loans there,” notes Michael D. Sneden, Executive Vice President at ValueXpress. “But through … [Read more...] about AAHOA Alert! 4.28.14: CMBS Conduit Loans Available in Small Markets
AAHOA Alert! 4.24.14: AAHOA Borrowers Use Cash-Out Proceeds from CMBS Conduit Loans to Grow
Since 2011 when the CMBS conduit loan market resumed, ValueXpress has made approximately $200 million in CMBS conduit loans to AAHOA members who refinanced approximately $140 million of debt. This means that $60 million of equity was returned to borrowers, most of which was reinvested in additional … [Read more...] about AAHOA Alert! 4.24.14: AAHOA Borrowers Use Cash-Out Proceeds from CMBS Conduit Loans to Grow
4.18.14: CMBS Conduit Loan Rates Fall
The combination of lower CMBS yields, competition and a declining swap rate is contributing to rapidly declining interest rates for CMBS conduit loan borrowers. As of Thursday, April 17, the 10-year Swap rate used to set CMBS loan interest rates had fallen to 2.75% from an April high of 2.93% on … [Read more...] about 4.18.14: CMBS Conduit Loan Rates Fall
12.31.13: Conduit Loan Maturities in 2014 Present an Opportunity
Following the maturity of approximately $375 billion of commercial loans in 2013 held by CMBS trusts, banks, insurance companies and other financial institutions, Berkadia and Trepp estimate another $350 billion is coming due in 2014 and roughly $1.4 trillion in 2014-2017. The large amount of … [Read more...] about 12.31.13: Conduit Loan Maturities in 2014 Present an Opportunity
5.22.13: Fannie Mae and Conduit Rates Converging for Multifamily
With Fannie Mae’s recent 10-basis-point increase in fees it charges lenders to guarantee loans and the continued decline in CMBS conduit rates, the rate gap between the two multifamily products is diminishing, particularly for smaller balance (under $10 million) loans on “B” quality multifamily … [Read more...] about 5.22.13: Fannie Mae and Conduit Rates Converging for Multifamily
7.9.12: Apparently Discounted Payoffs Are Okay for CMBS Conduit Loans
A detailed read of the 699-page prospectus for the CMBS issue from Jeffries LoanCore, Goldman Sachs and Citigroup (GSMS 12-GCJ7) that closed in June 2012 revealed some interesting facts regarding refinance loans in which the prior lender was being paid off at less than the full amount due. Pages … [Read more...] about 7.9.12: Apparently Discounted Payoffs Are Okay for CMBS Conduit Loans
6.15.12: CMBS Conduit Loan Rates Steady Despite Capital Market Turbulence
CMBS conduit loan rates are holding relatively steady despite market turbulence surrounding the European debt crisis. Fixed income professionals are increasingly worried about whether Greece will exit the European Union and whether debt-related trouble will spread to Spain, Italy and Ireland. … [Read more...] about 6.15.12: CMBS Conduit Loan Rates Steady Despite Capital Market Turbulence