Banking Misconduct Blog


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 bleaker.
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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...

TIC Groups Beware – Is Your Manager a Wolf in Sheep’s Clothing?

TIC investors don’t get much sleep these days. The recent conviction of Carlton Cabot may have put one of the most notorious TIC promoters behind bars but there is still a tremendous amount of bad behavior involving tenant in common financed real estate projects. In this post, we will discuss...

More Bad News for CMBS Real Estate Investors

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...

Tick Tock... CMBS Crisis Looms (Lender Liability Post)

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...

CMBS Borrowers Feeling the Squeeze on Refinancing

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...

Many TIC & CMBS Financed Projects Facing Default

“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...

The Looming TIC Time Bomb

The year was 2006, the economy was booming and many thought the real estate market still had years more of growth. Promoters like Carlton Cabot and Tony Thompson were pushing a unique investment called a “tenant-in-common” or TIC investment. TICs took advantage of a 2002 IRS revenue...