Banking Misconduct Blog


Shopping Centers Say Lender Interfering with Tenants

Shopping Centers Say Lender Interfering with Tenants

So many shopping centers are struggling to stay afloat during the pandemic. Even with a vaccine, many experts say that the face of retail shopping has changed forever. How many people will permanently shop online once things return to normal?
Since the pandemic began, mall owners have had to...

CMBS Mortgages and B Piece Buyers

CMBS Mortgages and B Piece Buyers

In today’s commercial real estate market, commercial loans are often pooled together to create commercial mortgage backed securities (CMBS). These loan pools typically have several tranches. Each varies in credit quality and payment priority.
The first-to-be paid tranches of bondholders...

LNR Partners... Coronavirus Scrooge Award

LNR Partners... Coronavirus Scrooge Award

Yesterday Goldman Sachs predicted America’s GDP for the 2nd quarter would plunge a breathtaking 24%. Previously, the largest drop in U.S. history occurred in 1958. That was just 10%. Despite all the doom and gloom, both the government and private sector are working together to keep businesses...

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 Servicing: the Ultimate Hardball Tactics

An article recently appeared on Syracuse.com. The title of the article was Inside Destiny USA’s Mortgage Emergency… Crisis or Hardball Bargaining? Destiny USA is the 6th largest retail mall in the United States. The journalist who wrote the article, Rick Moriarty, noted that the...

Second Mortgage Grounds for a Default? (Material vs Technical Breach)

Can a Lender Put Me in Default for a Technical Breach?
Here is a chilling scenario that happens more than you think. Borrower secures commercial mortgage back securities (CMBS) or other financing for the purchase of an office building or shopping mall. After a major tenant leaves, the...

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...

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,...


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....