PPP round-one forgiveness was relatively easy. Most borrowers could self-certify that they complied with the SBA requirements for forgiveness. No documentation was required to self-certify. PPP round-two forgiveness remains relatively easy for PPP loans under $150,000. Those borrowers can continue to self-certify using SBA PPP Loan Forgiveness Form 3508S with no supporting documentation.

The challenge is for PPP second-draw borrowers that obtained loans of more than $150,000. These borrowers need to show supporting documentation to support full forgiveness of the loan. Borrowers need to calculate “covered periods,” reduce compensation for employees who earned over $100,000, calculate “full-time equivalents” for part-time employees and myriad of other compensation calculations for the covered period. Many payroll providers can provide the required reports, but you need to know what you are asking for.

ValueXpress has helped its clients for loans over $150,000 navigate the forgiveness process. It’s a burdensome process, but you must do it. Otherwise? Don’t be surprised when your PPP lender sends you your payment coupon in the mail!

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We obtain CMBS pricing directly from Wall Street CMBS dealers. We manage a CMBS securities portfolio for Country Bank, a New York State community bank affiliated with ValueXpress, that has been actively buying and selling CMBS for its investment portfolio for nearly ten years, attracted to their high relative yield, underlying asset diversity and attractive capital risk weighting. This activity has allowed ValueXpress to be at the forefront in terms of market pricing, which we utilize to develop the weekly rate sheet.

If you want to be on the cutting edge for CMBS conduit loan rates, sign up for our rate sheet today!

The post 6.3.19: Don’t Forget to Sign Up for Our Rate Sheet appeared first on VALUEXPRESS - Commercial Mortgage Loans.

Why not bookmark this page for direct access each Monday? Many of our mortgage banking associates who focus on the origination of CMBS conduit loans stick this Rate Sheet on their bulletin board each Monday. Then they have the current rates nearby when borrowers call for rates. In CMBS, rates are determined by adding the current swap rate (5-, 7- or 10-year swap, depending on the loan term) to the spread. The rate is determined at closing by adding the indexes together and the rate is fixed for the entire loan term.

Our Rate Sheet is useful for other purposes as well. It serves as a refresher that ValueXpress offers 5-, 7- or 10-year loan terms in CMBS, with loan payments based on 25- to 30-year amortization schedules. The sheet lists all the asset types that qualify for CMBS conduit loans. Furthermore, you can quickly see the underwriting criteria for each asset type, including minimum debt-service coverage ratio, maximum loan-to-value and minimum debt yield requirements.

“Although the interest rate spread is shown as a range, we can quickly determine a specific loan spread for any deal by running the rent roll and income and expense statements through our loan sizing and pricing models,” commented Michael D. Sneden, Executive Vice President at ValueXpress. “Please email me any deals that you need loan pricing on at msneden@valuexpress.com.”

The post 6.23.17: Don’t Forget: CMBS Conduit Loan Rates Are Listed on Our Website appeared first on VALUEXPRESS - Commercial Mortgage Loans.