Banking Misconduct Blog



Record Numbers of CMBS Borrowers Need Help – Covid-19

Record Numbers of CMBS Borrowers Need Help – Covid-19

Our phones have been ringing off the hook. Hotel and mall owners need help. The hospitality and retail industry went into crisis mode virtually overnight. According to Fitch Ratings, 2,600 commercial borrowers have already sought help. And that was in just two weeks of March! We suspect many...

LNR Partners... Coronavirus Scrooge Award

LNR Partners... Coronavirus Scrooge Award

Yesterday Goldman Sachs predicted America’s GDP for the 2nd quarter would plunge a breathtaking 24%. Previously, the largest drop in U.S. history occurred in 1958. That was just 10%. Despite all the doom and gloom, both the government and private sector are working together to keep businesses...

LNR Partners – Storm Clouds Brewing for Special Servicers (CMBS Post)

LNR Partners – Storm Clouds Brewing for Special Servicers (CMBS Post)

[Editor’s Note: This post originally appeared in September 2014 on our sister site Mahany Law. The post has been rewritten and moved to this site. Important information appears at the end relative to the coronavirus pandemic and its impact on the hospitality industry.]\
Imagine that you...


Common CMBS Problems (How to Fight Your Lender and Win)

Borrowers’ Nightmares from CMBS Funded Loans Much of our lender liability practice revolves around borrowers in CMBS loans. Although down in number from their heyday in 2008, they are still in use and many borrowers seek them out. While they may look attractive at first, they often catch...

Virginia Confession of Judgment - What Borrowers Need to Know

Virginia Confession of Judgment - What Borrowers Need to Know

If a confession of judgment sounds ominous, it is. These provisions allow the debtor to appoint the creditor as his or her agent and appear before a court and confess judgment in the event of default. As a practical matter, when a default occurs, the creditor can obtain a judgment without advance...

Pre-Negotiation Agreements – Beware the Lurking Danger

Pre-Negotiation Agreements – Beware the Lurking Danger

Watch any reality cop show and you will likely hear the words, “Anything you say can and will be used against you.” Pre-Negotiation Agreements (often called PNAs) are much the same. Many unscrupulous lenders will stuff these agreements with one-sided waivers and clauses favoring the...

Springing Guaranties and Bad Boy Provisions

Springing Guaranties and Bad Boy Provisions

Banks want as much security as they can when they loan money. Conversely, borrowers want to avoid as much personal liability as possible. It is been that way since the beginning of banking.

One tool that has found favor in recent years is a “springing guaranty” or...

Wells Fargo Ordered to Face Claims Over Loan Fees

Wells Fargo Ordered to Face Claims Over Loan Fees

Wells Fargo is at it again, this time facing allegations that it improperly charged homeowners with erroneous fees. The bank sought to dismiss the case but a federal judge in Camden, New Jersey said the homeowners could proceed with their bad faith claims. Since the case was brought as a class...