CMBS Loans, Conduit Loans
Multifamily Loans
Pooling and Servicing Agreements: What CMBS ...

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.

Pooling and Servicing Agreements: What CMBS Borrowers Need to Know
CMBS Loans, Conduit Loans
Multifamily Loans
CMBS and REITs: What Commercial Borrowers ...

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 and REITs: What Commercial Borrowers Should Know
CMBS Loans, Conduit Loans
Multifamily Loans
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 ETFs: How Do They Affect Borrowers?
CMBS Loans, Conduit Loans
Multifamily Loans
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 Servicing: What Borrowers Need to Know
CMBS Loans, Conduit Loans
Multifamily Loans
CMBS Default and Delinquency Rates: What ...

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.

CMBS Default and Delinquency Rates: What Borrowers Should Know

CMBS Prepayment

,

Lockouts in Relation to CMBS Loans

,
Lockouts in Relation to CMBS Loans

For borrowers, prepayment penalties can be one of the most challenging aspects of CMBS loans. In addition to prepayment penalties, however, most conduit loans have a lockout period, a period of time in which the loan cannot be prepaid at all.

,

Prepayment Penalties for CMBS Loans

,
Prepayment Penalties for CMBS Loans

If you take out a CMBS loan, and you want to pay off the loan early, perhaps because you’re selling the property, you’ll usually have to pay a prepayment penalty. Prepayment penalties are designed to compensate the lender, or, in the case of CMBS loans, the investors, for the loss of income that will result from a borrower paying off their loan early.

 
JVlogo.jpg