Oct 9, 2018
Yield Maintenance in Relation to CMBS Loans
While many conduit loans require that borrowers engage in defeasance if they want to prepay their loan, some lenders permit borrowers to prepay using yield maintenance. Yield maintenance involves a borrower paying off the balance of their CMBS loan, plus an additional 1-3% fee in order to compensate the lender for the income they’ve lost as a result of loan prepayment.
Oct 2, 2018
Prepayment Penalties for CMBS Loans
CMBS loans come with prepayment penalties — typically defeasance or yield maintenance. Find out how each penalty works.