Pooling and Servicing Agreements: What CMBS Borrowers Need to Know

Pooling and Servicing Agreements: What CMBS Borrowers Need to Know

A pooling and servicing agreement (PSA), is a contract that is required when loans, including CMBS loans, are pooled together and packaged into mortgage backed securities. For CMBS loan borrowers, this means that they must abide by both the terms of the loan agreement, and by the terms of their loan’s pooling and servicing agreement.

CMBS and REITs: What Commercial Borrowers Should Know

CMBS and REITs: What Commercial Borrowers Should Know

A real estate investment trust (REIT) is a firm that acquires, owns, and operates income-producing commercial real estate, or, in the case of mortgage REITs, commercial mortgages. REITs may be either publicly traded or non-traded, private REITs, depending on the individual company. CMBS loans and REITs have a complex relationship; on one hand, traditional REITs use CMBS loans to finance their property investments, while certain mortgage REITs originate or purchase commercial loans in order to generate profits for investors.

CMBS ETFs: How Do They Affect Borrowers?

CMBS ETFs: How Do They Affect Borrowers?

An exchange-traded fund (ETF) is a fund comprised of securities that is regularly traded on major stock exchanges. CMBS ETFs are exchange-traded funds composed of commercial mortgage backed securities (CMBS). A commercial mortgage backed security generally consists of a pool of loans issued to income-producing commercial properties, such as apartment buildings, shopping centers, and hotels, that is placed in a trust, securitized, and sold to investors on the secondary market. Right now, the concept of CMBS ETFs is relatively new, so only one CMBS ETF is currently being actively traded, the iShares CMBS ETF.

CMBS Servicing: What Borrowers Need to Know

CMBS Servicing: What Borrowers Need to Know

A pooling and servicing agreement (PSA), is a contract that is required when loans, including CMBS loans, are pooled together and packaged into mortgage backed securities. For CMBS loan borrowers, this means that they must abide by both the terms of the loan agreement, and by the terms of their loan’s pooling and servicing agreement.

CMBS Default and Delinquency Rates: What Borrowers Should Know

CMBS Default and Delinquency Rates: What Borrowers Should Know

While CMBS lenders’ underwriting standards are stricter than they once were, a certain amount of conduit loan borrowers still default on their loans. It’s generally understood that a loan default is something that borrowers want to avoid at all costs. However, understanding the CMBS default rates-- and, just as importantly, the reason why borrowers defaulted on their loans in the first place, can be essential for borrowers who want to avoid the same fate.

Can Trepp Can Provide Valuable Market Data for CMBS Borrowers?

Can Trepp Can Provide Valuable Market Data for CMBS Borrowers?

Trepp is a data analytics and software company which provides information and insights about the CMBS and commercial real estate markets. While Trepp’s products are mainly targeted towards institutional bond investors, broker dealers, and hedge funds, their products can also be also be valuable for CMBS borrowers, as well as investors interested in acquiring properties that are currently being funded with CMBS loans (especially in the case of loan assumptions).

CMBS Primer: A Basic Guide to CMBS/Conduit Loans

CMBS Primer: A Basic Guide to CMBS/Conduit Loans

CMBS loans, also referred to as conduit loans, are one of the most popular ways to finance commercial real estate in the United States. They are offered for almost all types of income-producing commercial properties, such as office buildings, shopping centers, apartment buildings, and hotels. When compared to other types of commercial property loans, CMBS loans have a variety of advantages and disadvantages. In this CMBS primer, we’ll discuss the differences between conduit loans and other types of commercial financing, and tell borrowers exactly what they need to know before deciding to take on CMBS debt.

The CMBS Origination Process: What Borrowers Need to Know

The CMBS Origination Process: What Borrowers Need to Know

CMBS loan origination is the process in which a conduit lender analyzes a borrower’s commercial loan application, determines their suitability for financing, presents the terms to the borrower, and, if both parties agree, issues funds. In contrast to bank loans, the CMBS origination process can be somewhat complex, as each loan must meet specific credit standards in order to be securitized. In this process, a conduit loans are pooled with other loans and sold to investors as commercial mortgage backed securities.