Banking Misconduct Blog


Hotel Values Plummet – Borrowers Seeking Help

Hotel Values Plummet – Borrowers Seeking Help

Anyone who owns an office building, shopping center or other commercial space has probably seen their property values decrease since the pandemic began. Particularly hard hit are hotels, especially those in tourist areas.

The Financial Times reported in September that values are down...

Anatomy of a Lawsuit Against Rialto Capital Partners

Anatomy of a Lawsuit Against Rialto Capital Partners

[This post is taken from court documents and a story published by Law360. Although we represent the Plaintiffs in the lawsuits, we do not comment on pending litigation.]
Many commercial projects are financed with CMBS loans. Short for “Commercial Mortgage Backed Securities,” CMBS...


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...


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...

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...

Economic Duress (Another Tale of LNR Partners Wrongdoing)

Economic Duress (Another Tale of LNR Partners Wrongdoing)

We are not a fan of special servicers, especially LNR Partners and CWCapital. Somewhere along the way, both companies forgot their mission and began to be motivated by their own financial gain and not the well-being of their clients, the public or property owners.

Few property owners...

CMBS Mall Loan in Default? We Can Help

There are hundreds of troubled loans across the United States involving shopping centers and strip malls. And things are getting worse. Boston Store, K-Mart and Sears. Lose an anchor tenant and very often it is the end of the mall.

We represent property owners and not banks, loan...

Special Servicers – Do They Answer to Anyone? CMBS Post

Anyone commercial property owner facing a special servicer soon learns the deck is stacked. Many commercial loans today are securitized and packages into loan pools. These pools are sold to a trust that is owned by institutional investors. Unlike a bank that has offices and employees, a CMBS trust...