Banking Misconduct Blog


CMBS for Novice Investors

Understanding Commercial Mortgage Backed Securities (CMBS) can be a daunting task for the novice investor. As lender liability lawyers, we grapple with complex loan arrangements daily. We understand the jargon, the many different players in a CMBS transaction and how all the pieces fit together....

Judge Accuses Bank of America of "Battle-Fatigued Demoralization"

A federal judge in Sacramento, California has given Bank of America a lesson in corporate responsibility. Bankruptcy Judge Christopher Klein sanctioned America's "Too Big to Care" banking giant up to $46 million for causing severe emotional distress to a California couple facing foreclosure. In the...

Can I Sue My Bank for Not Providing Promised Refinancing

[Spoiler Alert – There is hope for borrowers fighting banks who failed to deliver on a promised refinancing.]
 
The failure of banks to deliver on a promised modification or refinancing is one of the most frequent complaints we hear from commercial borrowers. In the typical...

CMBS Delinquencies Increase – What Can Borrowers Do?

January 2017 was another bad month for CMBS delinquencies. The percentage of loans financed with commercial mortgage backed securities that are now considered delinquent once again creeped over 3.00%. According to the trade publication Mortgage Daily, the long term outlook is even...

Can Banks Demand New Loan Guaranties after Bankruptcy?

A ruling by federal bankruptcy judge in North Carolina makes it more difficult for banks to force debtors to sign a new personal guaranty after discharge in bankruptcy. The decision could have wide ranging implications and help borrowers.
 
In re Schwarz  
Dr. Karl...

Unauthorized Fund Transfers (Bank Wire Fraud)

This is every consumer’s and business owner’s worst nightmare. One morning you open your email and see that large numbers of checks are bouncing. “That’s odd,” you think. There should be plenty of money in your account. Even though you know that there is money in your...

LENDER Sues Borrower for Deceptive Trade Practices

Most states have a Deceptive Trade Practices Act. These laws typically prohibit “unfair methods of competition and unfair or deceptive acts or practices.” The first state to enact such a law was Massachusetts in 1967. Today just over half the states have enacted similar laws.
The...

CMBS News Getting Worse

Trepp, LLC, the leading source of analytics to the Commercial Mortgage Backed Securities (CMBS) industry, issued a press release this week and the news isn’t good. According to the company, the US CMBS delinquency rate soared to new highs.
 
We have long warned TIC groups and...

Brace for More CMBS Loan Defaults

We have written many articles on this blog highlighting the myriad of problems facing borrowers with projects financed by Commercial Mortgage Backed Securities (CMBS) loans. Most of these loans were written in 2006 and 2007 and carried a 10 year loan term. That means they are coming due now or in...

CMBS Loan Modifications – Who Should You Call?

You are a borrower with a multimillion loan. The bank where you borrowed the money has long ago sold the loan to a Commercial Mortgage Backed Securities or CMBS trust. Worried about falling occupancy or even hoping for better terms, you decide to seek a loan modification. What should you...