A guide to maturing CMBS loans: when maturing loans in commercial mortgage-backed securities start to encounter financing difficulties, a solution may not be readily apparent. But mortgage bankers can help their clients find acceptable alternatives.

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Commercial Servicing

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A guide to maturing CMBS loans: when maturing loans in commercial mortgage-backed securities start to encounter financing difficulties, a solution may not be readily apparent. But mortgage bankers can help their clients find acceptable alternatives.

Commercial mortgage bankers and their borrowers are struggling with how to effectively deal with maturing loans in commercial mortgage-backed security (CMBS) transactions. A dearth of financing alternatives is available to refinance properties and pay off maturing loans. CMBS servicing involves multiple parties and bifurcated responsibilities, which are confusing and difficult to navigate. This article will provide guidance to mortgage bankers to help them better assist their clients. Borrowers with maturing loans and their representatives need to understand the process by which CMBS servicers manage this very critical activity. Borrowers need to demonstrate to the servicers their ability to be part of the solution, and they need to have a well-defined plan to ultimately pay off the loan through either refinancing or sale of the property. Mortgage bankers can play an important role in helping borrowers understa...

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