Banking Misconduct Blog


Hotel and Shopping Center Loans in a Freefall – How to Survive

Hotel and Shopping Center Loans in a Freefall – How to Survive

Recently we read a story about the effects of COVID-19 on the hospitality and retail industry. It said that borrowers in “pandemic freefall struggle to avoid default.” Unfortunately, those struggles are real. We are seeing the worst year on record for hotel occupancy and sales figures....

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...


Special Servicers - Operating Without Oversight (LNR, CWCapital C-III)

[Editor’s Note: This post originally appeared on our sister site, MahanyLaw in July of 2014. We have updated and reposted it here.] Special servicers are the folks that take over the handling of loans that are delinquent, in default, or believed to be troubled. In large, commercial mortgages,...

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...

From the Archives – CWCapital Sued for Libel, RICO

We are no fans of special servicers. At the top of our list of bad commercial loan servicers are CWCapital Asset Management (“CW Capital”) and LNR Partners. We have litigated complex CMBS cases against both companies, something few lawyers have done. Because our practice is so unique,...

Special Servicer LNR Partners Sued in Shopping Center Row

[Ed. Note - If you own a commercial property and find your loan has been transferred to a special servicer, READ THIS POST.]
The owners of a Ft. Wayne shopping center have filed suit against special servicer LNR Partners and others over a mortgage covering the property where the center is...

“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...

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...