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.