Last fall, Paul Vanderslice, a Citigroup veteran and former Cantor Commercial Real Estate executive led the formation of a new CMBS securitization platform, BMO Capital Markets. BMO, the investment banking subsidiary of Bank of Montreal, has built out a "first-rate" commercial mortgage-backed … [Read more...] about 4.17.21: BMO CAPITAL STAFFS UP FOR CMBS CONDUIT LENDING PUSH
9.22.20: COMMERCIAL BANKS PULL BACK ON LENDING, BENEFITTING CMBS
Commercial banks have pulled back on commercial lending amid the COVID-19 pandemic. While CMBS lenders originate and sell loans, pushing servicing and administration on to others, problem loans at commercial banks are addressed in-house, which is diverting internal bank resources to solving payment … [Read more...] about 9.22.20: COMMERCIAL BANKS PULL BACK ON LENDING, BENEFITTING CMBS
8.24.20: STRUCTURING FOR ROLLOVER RISK IN CMBS LENDING
One of the primary causes of CMBS conduit loan defaults for commercial properties is the loss of income when a tenant occupying a large portion of the property vacates or defaults on its lease payments. Typically, when a large tenant stops paying rent, the income from the property is no longer … [Read more...] about 8.24.20: STRUCTURING FOR ROLLOVER RISK IN CMBS LENDING
8.12.19: Lending Rates Fall Dramatically
An unexpected rapid decline in the 10-year Treasury and swap yield has driven down loan rates for CMBS conduit loans and other commercial loans tied to these indexes. The 10-year swap has declined an astounding 100 basis points (bp) since May and nearly 40 bp in the last three weeks. Analysts are … [Read more...] about 8.12.19: Lending Rates Fall Dramatically
7.18.19: Be Careful When Lending on Dual-Branded Hotels
Dual-branded hotels are becoming more popular as owners aim to capture more guests by having two market segments under one roof. The benefits are twofold: It brings the best of both brands to more guests and consolidates back-of-house operations like housekeeping, reducing overall operating costs. … [Read more...] about 7.18.19: Be Careful When Lending on Dual-Branded Hotels
2.7.18: More Benefits of the Fixed-Cost CMBS Lending Program
Last week we provided some exciting information for small balance CMBS borrowers ($2 million-$10 million) with the introduction of a fixed-fee CMBS conduit loan. The fee -- $25,000 -- covers all third-party transaction costs, including appraisal, property condition assessment, Phase I environmental … [Read more...] about 2.7.18: More Benefits of the Fixed-Cost CMBS Lending Program
9.1.15: Life Insurance Companies Increase Commercial Real Estate Lending
Slowly and steadily, life insurance companies are increasing their commercial real estate lending. Market participants expect the industry’s current expansion to run for at least two or three more years, signaling a further pickup in life company lending volume. “It’s a robust environment,” said … [Read more...] about 9.1.15: Life Insurance Companies Increase Commercial Real Estate Lending
6.26.15: The Power of Unrestricted Cash Out and Non-Recourse Keeps CMBS Conduit Lending Active
While the recent rise in the Swap rate indexes used to set interest rates for CMBS conduit loans has slowed rate-sensitive borrowers from closing loans, the rise has not deterred borrowers who use the CMBS conduit loan as a tool to extract excess equity in their real estate assets. “Whenever I … [Read more...] about 6.26.15: The Power of Unrestricted Cash Out and Non-Recourse Keeps CMBS Conduit Lending Active
9.2.14: Credit Union Lending Way Up
The “Wall Street Journal” recently reported that U.S. credit unions are stepping up lending aggressively, posting loan growth of 9.8% in the second quarter of 2014, according to data released by the National Credit Union Administration (NCUA). That easily surpassed the 4.9% increase in loans … [Read more...] about 9.2.14: Credit Union Lending Way Up
7.14.14: Out-of-Market SBA Lending on the Rise
American Banker recently reported that more community banks are offering Small Business Administration (SBA) loans far beyond their local markets, hoping that the income boost outweighs the long-term risk of lending in unfamiliar regions. Strong demand for SBA loans and a strong secondary market … [Read more...] about 7.14.14: Out-of-Market SBA Lending on the Rise
