Banking Misconduct Blog


“Retail Apocalypse?” Words CMBS Borrowers Fear

It is a dangerous world right now for CMBS financed real estate investors. 2017 is expected to bring in a record number of defaults. Much of those defaults are simply the result of bad timing. Loans financed at the height of the real estate market in 2007 are coming due today. (Most CMBS borrowers...

CMBS for Novice Investors

Understanding Commercial Mortgage Backed Securities (CMBS) can be a daunting task for the novice investor. As lender liability lawyers, we grapple with complex loan arrangements daily. We understand the jargon, the many different players in a CMBS transaction and how all the pieces fit together....

Brace for More CMBS Loan Defaults

We have written many articles on this blog highlighting the myriad of problems facing borrowers with projects financed by Commercial Mortgage Backed Securities (CMBS) loans. Most of these loans were written in 2006 and 2007 and carried a 10 year loan term. That means they are coming due now or in...

Another CMBS Investor Deal Heads to Special Servicer LNR Partners

Back in 2006, investing in the Little Rock Regions Bank Building sounded like a great deal. That year, the real estate market nationwide was quite hot. Few knew that within two years, the bubble would burst. In September of that year, a company called NNN 400 Capitol Center and several dozen...

More Bad News for CMBS Real Estate Investors

The real estate industry is quite cyclical. Unfortunately, many investors who participated in the last round of shopping center construction are finding themselves in trouble. Worse, many are in deep trouble but don’t even know it. While institutional investors may be better prepared to...

Tick Tock... CMBS Crisis Looms (Lender Liability Post)

Rating agencies are sounding the alarm over the looming problems facing maturing CMBS loans. A large percentage of commercial mortgage backed securities (CMBS) financed loans were underwritten in 2006 and 2007 at the height of the real estate market. Those loans are coming due just as the...

LNR Partners - A "Cash Cow" (CMBS Special Servicer Post)

Yesterday Seeking Alpha published an article on Starwood Property Trust, the owner of embattled special servicer LNR Partners LLC. The article hails Starwood as a "cash cow" and worthy investment. Where does Starwood get much of its cash? From LNR.
LNR Partners is the nation's...

Many TIC & CMBS Financed Projects Facing Default

“Rearranging the deck chairs on the Titanic,” that is how I describe the many owners of real estate projects financed with CMBS or tenant in common structures. The ship is sinking, slipping under the surface, yet the party on the upper decks continues. Unfortunately, the folks most at...

Court Okays Lawsuit Against BNY Mellon as Mortgage Trustee

Earlier this week, a federal judge in Manhattan gave a green light to a lawsuit filed by an investor against Bank of New York Mellon. The investor claims it lost over $1 billion because of BNY Mellon’s poor performance as trustee over several Residential Mortgage Backed Securities (RMBS)...

CMBS Woes - New Risks from B Piece Buyers

If the title of this post is confusing, you aren’t alone. There are only a handful of lawyers in the country that regularly handle Commercial Mortgage Backed Securities (CMBS) related issues. We are often called upon by the owners of real property to sue servicers, special servicers and...