5.1.15: Maturing CMBS Loan Leads Effective Tool for CCTG Grads

admin — Fri, 01 May 2015 00:00:00 +0000

For more than two years now, Michael D, Sneden, Executive Vice President at ValueXpress, has been training Commercial Capital Training Group (CCTG) students how to successfully originate CMBS conduit loans. One of the most successful tools the new grads are using to close loans is leads provided by ValueXpress for maturing CMBS conduit loans.

The greatest amounts of CMBS conduit loans closed were in 2005 ($166 billion), 2006 ($198 billion) and 2007 ($228 billion). Most of these loans have a 10-year term and therefore will be maturing in 2015, 2016 and 2017, respectively. It is logical that the majority of the maturing CMBS conduit loan borrowers will refinance into a new CMBS conduit loan, likely with some cash out and a better rate. Knowing which loans are maturing, where they are located and reaching out to their owners early can reap big rewards for brokers who originate new CMBS conduit loans for the maturing loans.

That’s where the CCTG grads and ValueXpress become a very effective team. ValueXpress subscribes to a service that provides information on every CMBS conduit loan ever written, including maturity date, interest rate and property cash flow. For each CCTG grad, Jim Brett, head of CMBS analytics at ValueXpress, does a sort of high performing properties with CMBS conduit loans maturing in the next 6-12 months and provides leads to grads within a 50-mile radius of their offices. The grads hit the road to meet with borrowers, and ValueXpress provides the analytics, processing and closing support to get the loans closed.

“We simply don’t have the manpower to visit every single borrower across the United States who has a maturing CMBS conduit loan,” said Sneden. “But the local CCTG grads do have that opportunity, and as a result, we are closing one to two loans a month with grads using this approach.”

The post 5.1.15: Maturing CMBS Loan Leads Effective Tool for CCTG Grads appeared first on VALUEXPRESS - Commercial Mortgage Loans.

7.13.12: Trepp: Only 28% of Maturing 2007 CMBS Loans Paid Off in Full

admin — Fri, 13 Jul 2012 00:00:00 +0000

According to Trepp, 2007 marked the year that commercial real estate values and the surrounding euphoria peaked. In the five years since, investors have spent countless nights fretting about the weak underwriting, optimistic revenue forecasts and inflated values tied to these loans. Prevailing wisdom indicated that the default rate would be high and many of the loans would struggle to refinance. Now that 2012 is half over, we can see how these loans have fared. For the most part, their performance has met investors’ dismal expectations.

Almost 13% of the loans were paid off prior to their maturity date. Another 15% paid off at the balloon date or in the months after the maturity date. Therefore, only about 28% of the Class of 2007 loans paid off in full. The Class of 2007 loans that matured in the first half of 2012 in its entirety looks like this:

Total Balance of Loans: $18.6 billion
Extended: 30.49%
Disappeared Early:
(Loss): 8.26%
(Par): 12.94%
Paid Off at Balloon:
(Loss): 2.63%
(Par): 15.19%
Still Outstanding (includes extended loans): 60.98%

The post 7.13.12: Trepp: Only 28% of Maturing 2007 CMBS Loans Paid Off in Full appeared first on VALUEXPRESS - Commercial Mortgage Loans.

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5.1.15: Maturing CMBS Loan Leads Effective Tool for CCTG Grads

7.13.12: Trepp: Only 28% of Maturing 2007 CMBS Loans Paid Off in Full