Banking Misconduct Blog


LNR Partners – Storm Clouds Brewing for Special Servicers (CMBS Post)

LNR Partners – Storm Clouds Brewing for Special Servicers (CMBS Post)

[Editor’s Note: This post originally appeared in September 2014 on our sister site Mahany Law. The post has been rewritten and moved to this site. Important information appears at the end relative to the coronavirus pandemic and its impact on the hospitality industry.]\
Imagine that you...


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...

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...

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...

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 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....