Tag Archives: CMBS

Commercial mortgage-backed security (CMBS) delinquencies have posted substantial declines over the past two months, according to Trepp.

The slowing pace of workouts hasn├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ót stopped CMBS special servicer volume from falling, Fitch Ratings reported. According to Fitch├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós weekly U.S. CMBS Market Trends newsletter, the balance of loans in special servicing as of June 30 was $80.5 billion, a drop from $83.1 billion at the end of 2011 and $85.6 billion in June 2011. This news comes despite a slowdown in resolutions in the year├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós first half, with 1,242 loans resolved in that time (compared to 1,556 in the first half of 2011).

low job creation and tight loan availability are hindering otherwise positive growth in commercial real estate, the National Association of Realtors reported. While ├â┬ó├óÔÇÜ┬¼├àÔÇ£positive underlying fundamentals├â┬ó├óÔÇÜ┬¼├é┬Ø helped boost all of the major commercial real estate sectors, growth in some areas has been tempered by various issues, including job growth and shifts in demand. Demand has also been dampened by problems small businesses have in securing commercial real estate loans. The multifamily sector is the only one that has seen increased demand.

Aite Group is speaking out on contemporary issues in the commercial mortgage-backed securities (CMBS) marketplace. The company's senior analyst, John Jay, recently released his statements in response to a New York Times article evaluating the potential impact of pre-crisis commercial loans.

The Mortgage Bankers Association released a report Friday that ranked mortgage giant Wells Fargo last year's top commercial and multifamily mortgage originator. The trade group offered a set of comprehensive listings responsible for tracking originations by different investor groups. Wells Fargo snagged mentions in several listings, including those for commercial banks, savings institutions, Fannie Mae, Ginnie Mae, the Federal Housing Administration, Real Estate Investment Trusts, and other investors.

In international news, the sale of securitized bonds is causing concern for the secondary market. Analysts from Morgan Stanley released a recent report indicating that securities earmarked for sale by the European banks holding the bonds could reach as high as $470 billion. For struggling companies, rising costs for funding and capital have weakened their positions, leading to the sale of assets; the institutions seeking to liquidate securities holdings encompass lenders focused on deleveraging and distressed banks.

Lawmakers and policymakers from both sides of the aisle recently teamed up to head a bipartisan commission on the future of U.S. housing policy. The Bipartisan Policy Center, a D.C.-based nonprofit organization, floated commission leaders whose names include former HUD secretaries Henry Cisneros and Mel Martinez, ex-Sen. Kit Bond, and onetime Senate Majority Leader George Mitchell, who also founded the organization. The commission will finalize the details of these recommendations in a major package for current lawmakers and policymakers.

A new acquisition is in the works for Ranieri Real Estate Partners LP (RREP) and WL Ross & Co. LLC. The companies are teaming up to purchase Deutsche Bank Berkshire Mortgage.

With single-family home sales lagging and more households struggling with debt issues, the Mortgage Bankers Association alleviated few concerns about the industry with news Thursday that mortgage debt outstanding for commercial and multifamily properties rose half a percentage point to hit $2.4 trillion over the second quarter this year. Multifamily mortgage originations are typically those used to finance new rental purchases. The trade group signaled a roughly $4-billion thrust upward in debt outstanding for both loans.

Commercial real estate loans are making Wall Street headlines again. Joint financing options are becoming increasingly abundant for financial firms struggling to handle the fall out from recent volatility in the commercial mortgage-backed securities market. During the summer, yields rose steadily, increasing the need for investor protection measures. As part of events underway, Barclays CApital announced a partnership with FundCore Finance Group to conduct CMBS loans jointly.