Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Thursday, 21 May 2020

More than 2,400 CMBS Borrowers Have Gotten or In Process of Getting Payment Relief

So far, more than 2,400 CMBS loans with a balance of $53.9 billion, or 10.6 percent of the universe, have received or are in the process of receiving payment deferrals or other modifications to tide them over during the coronavirus-related shutdown. The volume of borrowers seeking payment deferrals or other accommodations is sure to increase.

Data in the following story has been updated.

Commercial Real Estate Direct Staff Report

So far, more than 2,400 CMBS loans with a balance of $53.9 billion, or 10.6 percent of the universe, have received or are in the process of receiving payment deferrals or other modifications to tide them over during the coronavirus-related shutdown, according to Trepp LLC.

The data, through earlier this week, indicate that master servicers indeed have been working with borrowers of securitized loans that have seen property cash flows impacted as a result of the near-nationwide lockdowns instituted to stem the pandemic. The volume of borrowers seeking payment deferrals or other accommodations is sure to increase as additional data come in.

The industry has been using the term forbearance to describe the accommodations that servicers were making to allow borrowers to stay current on their loans. But so far, it appears most agreements involve allowing borrowers to tap reserve funds to make debt-service payments and the deferral of payments to those reserves for a period. Any amounts deferred generally must be repaid within the following 12 months. In some cases, debt-service payments are being deferred for a period.

Servicers in all cases retain the right to pursue remedies in the event of a default or bankruptcy. Those, in cases where agreements have been completed, have not been forborne.

"These are very much individualized decisions," explained Brian Olasov, executive director of financial services consulting at Carlton Fields. He noted that servicers would look at what the immediate cash needs of the property are, whether the recent financing involved a large distribution to the sponsors, what the property's long-term prospects might be and whether the loan has a reserve that could be tapped to fund debt-service obligations.

When it became evident early last month...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

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