Who are the Top CMBS Lenders?
If you’re on the market for a conduit loan, you may want to know who the biggest players in the lending game are— in essence, who you might be getting a loan from. In 2017, some of the biggest CMBS lenders in the U.S. included Goldman Sachs, JP Morgan, Deutsche Bank, and Morgan Stanley.
Are CMBS Loans Assumable?
In most cases, CMBS loans are fully assumable, though a small fee must often be paid. This is a huge advantage for CMBS borrowers, since one of the main disadvantages of CMBS financing is the difficulty of exiting the loan early.
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.
What are CMBS Spreads?
A CMBS credit spread is defined as the difference in yield between a U.S. treasury bond and a specific commercial mortgage backed security.