Banking Misconduct Blog

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...

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...

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...

Back in 2006, investing in the Little Rock Regions Bank Building sounded like a great deal. That year, the real estate market nationwide was quite hot. Few knew that within two years, the bubble would burst. In September of that year, a company called NNN 400 Capitol Center and several dozen...

The real estate industry is quite cyclical. Unfortunately, many investors who participated in the last round of shopping center construction are finding themselves in trouble. Worse, many are in deep trouble but don’t even know it. While institutional investors may be better prepared to...

Rating agencies are sounding the alarm over the looming problems facing maturing CMBS loans. A large percentage of commercial mortgage backed securities (CMBS) financed loans were underwritten in 2006 and 2007 at the height of the real estate market. Those loans are coming due just as the...

2016 and 2017 are the years when many CMBS (Commercial Mortgage Backed Securities) mortgages mature. Loans that were written in the height of the real estate market are now coming due. Even though most of these loans are not in default, we are already seeing problems with those forced to...

Yesterday Seeking Alpha published an article on Starwood Property Trust, the owner of embattled special servicer LNR Partners LLC. The article hails Starwood as a "cash cow" and worthy investment. Where does Starwood get much of its cash? From LNR.
LNR Partners is the nation's largest...

“Rearranging the deck chairs on the Titanic,” that is how I describe the many owners of real estate projects financed with CMBS or tenant in common structures. The ship is sinking, slipping under the surface, yet the party on the upper decks continues. Unfortunately, the folks most at...

Earlier this week, a federal judge in Manhattan gave a green light to a lawsuit filed by an investor against Bank of New York Mellon. The investor claims it lost over $1 billion because of BNY Mellon’s poor performance as trustee over several Residential Mortgage Backed Securities (RMBS)...