Presentation prepared for: Presented by: Ann Hambly, Founder and CEO 1ST SERVICE SOLUTIONS
AGENDA • CMBS Assumptions • CMBS Maturity Market Update • Performing Loan Requests
WHAT THINGS ARE CONSIDERED WHEN UNDERWRITING AN ASSUMPTION? CMBS ASSUMPTION
CMBS ASSUMPTIONS CURRENT PROPOSED Sponsor Property Manager Guarantor(s) Net Worth & Liquidity
TIMING P&S 30-45 Initial Conditions
CMBS MATURITY MARKET
2015 CMBS MATURITIES (BY LTV) As of 12/2014 • $86.9 Billion Loan to Value • 8,231 Loans 100+% 90-100% as reported by Morningstar 80-90% Below 80% 23% = Trouble Paying Off
REALITY AS OF JULY 2015 Average Payoff Rate = 84% / 16% “trouble” paying off
REASONS FOR BETTER THAN EXPECTED PAYOFF RATES • Low interest rates • Availability of capital for higher leveraged deals • Competition of capital providers
2016 CMBS MATURITIES (BY LTV) $128.07 Billion Loan to Value 100+% 80-100% 70-80% 50-70% <50% Not Valued
2017 CMBS MATURITIES (BY LTV) • $123.99 Billion Loan to Value 100+% 80-100% 70-80% 50-70% <50% Not Valued
MATURITY DATE = PAYOFF DATE e t a D y t i r u t a M Defeasance Open Period Forbearance Extension 90 Days 60 Days
PROMISSORY NOTE • Late Charge: If any part of the Debt (hereinafter defined) is not actually received by Lender by close of business on the fifth (5th) day after the date on which it was due. Borrower shall pay to Lender an amount (the "Late Charge") equal to the lesser of five percent (5%) of such unpaid portion of the missed payment or the maximum amount permitted by applicable law, to defray the expenses incurred by Lender in handling and processing such delinquent payment and to compensate Lender for the loss of the use of such delinquent payment. All such Late Charges shall be automatically due and payable without notice or demand and shall be secured by the Security Instrument and the Other Security Documents.
PERFORMING LOAN REQUESTS
PERFORMING LOAN REQUEST • Types • Release of portion of collateral • Change of property manager • Release of reserves for anything other than specified in loan documents • Addition of a gas station – grocery anchored retail • REMIC prohibited on performing loans • Secondary financing • Waive or reduce prepayment penalty • Waive defeasance • Release a guarantor • Uncross loans • Release a material portion of the collateral • Best to have in the loan documents up front! • Servicer’s motivations • Best interest of the CMBS Trust • Fees • Anything in it for us?
CONTACT US Ann Hambly Founder & CEO Phone: (817) 756-7220 Email: ahambly@1stsss.com Greg Dahms CMBS Borrower Advocate Phone: (903) 571-7527 Email: gdahms@1stsss.com www.1stsss.com
Recommend
More recommend
