Banking Misconduct Blog


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...

CMBS Mortgage Post – Mall Vacancies at Record High

As I write this post from my hotel room in Kingston, New York, a Toys R Us store sits empty in the parking lot across the street. Toys R Us is one of many big box retailers that have either closed completely or are going through a dramatic downsizing. For mall owners, that could mean...

Lone Star Funds – Distressed Investors or Vultures?

Distressed investing is the politically correct term these days for buyers of distressed properties.  There will always be property owners that find themselves in over their heads. Sometimes their problems arise from unforeseen market events and at other times, it is just from being...

“Retail Apocalypse?” Words CMBS Borrowers Fear

It is a dangerous world right now for CMBS financed real estate investors. 2017 is expected to bring in a record number of defaults. Much of those defaults are simply the result of bad timing. Loans financed at the height of the real estate market in 2007 are coming due today. (Most CMBS borrowers...

Retail Sees High CMBS Default Rates

Mortgage Daily reported this week that the rate of late payments on securitized commercial mortgage backed securities (CMBS) funded loans rose yet again. The record number of balloon payments coming do this year means defaults will likely continue throughout the year. In fact, the fear of a major...

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....

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...

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...