NPLs

  • Euro CMBS NPL warning

    Tiering within European CMBS is gradually forcing the best and the worst loans to leave the universe. Absent new primary issuance, this trend could result in European CMBS morphing into a non-performing loan asset class in which the securitised collateral is either in default or 'passed initial maturity' status.

    European CRE investment and lending markets are characterised by significant tiering, .......

    News 27 January 2012

  • Industry vets form CRE firm

    A new firm has launched in the CRE space, offering a source of capital solutions and expertise. SL Capital is an affiliate of The Lynd Company, providing capital from US$3m to US$200m-plus for commercial loan programmes and non-performing notes.

    The company offers a variety of national loan programmes including CMBS, multifamily financing, mezzanine debt, preferred equity, bridge loans and senior .......

    Job Swaps 18 January 2012

  • Servicer loss mitigation assessment debuts

    S&P's global surveillance analytics team has developed a method for assessing US mortgage servicers' default management processes. The aim is for investors to use the method to assess how effective servicers' strategies are in limiting losses.

    The new method incorporates two key components: how quickly individual servicers have been able to liquidate non-performing loans; and the success of their loan .......

    News Round-up 11 January 2012

  • US CMBS still strong

    The US CMBS primary and secondary markets have both remained active, with a raft of new issuances capturing investors' attention. Spreads have continued to tighten and the market is already looking forward to a flurry of new deals as 2012 begins.

    "Generally the market is slower at the moment, but there was a US$300m short triple-A CMBS bid-list out today," .......

    Market Reports 6 December 2011

  • Action plan

    Real estate auction platform looks to expand

    Online bidding platform Auction.com is credited for helping to resolve distressed real estate in the US by putting it directly into the hands of local entrepreneurs. The company is now looking to expand into the European market and potentially via non-core CRE asset dispositions.

    Participants at a Hatfield Philips servicer forum last week described Auction.com as having had a "stunning .......

    News Analysis 20 September 2011

  • Mixed performance for Mexican RMBS

    Fitch reports that the performance of Mexican RMBS transactions has suffered since 2008. While some portfolios have seen stabilisation since then, others continue to show signs of deterioration.

    180+ delinquencies have remained below 8% for most CEDEVIS transactions and below 3% for all TFOVIS transactions. In contrast, 180+ delinquencies for Sofoles/Sofomes-backed transactions have exceeded 20% and in some cases have .......

    News Round-up 13 September 2011

  • Come-back conditions

    CMBS loan assumptions make a return post-crisis

    CMBS loan assumptions are making a strong come-back in the US this year, after a hiatus in 2008-2009. However, the conditions that servicers typically place on assumptions appear to be more rigorous post-financial crisis.

    One noteworthy case from August 2010 that marked the re-emergence of CMBS loan assumptions after the financial crisis concerns Bethany Properties. The case involved the Arizona .......

    News Analysis 25 August 2011

  • Second-quarter CRE loan mods analysed

    Modifications of the CRE loans that back US CMBS continued at a steady pace in 2Q11. At the same time, there was a small downtick in the share of loans in special servicing, according to the latest CMBS and CRE CDO surveillance review from Moody's.

    The agency notes that along with a slight drop in the share of loans in .......

    News Round-up 9 August 2011

  • Small investor structured pilot closed

    The FDIC has closed on the first sales in its small investor programme (SIP). The pilot SIP involved two competitive sales of equity interests in two limited liability companies, each formed by the FDIC in its receivership capacity to hold certain assets of FirsTier Bank that failed on 28 January 28.

    The assets transferred by the FirsTier receivership to the .......

    News Round-up 8 August 2011

  • Euro SME CLOs stabilising

    European SME CLO transaction performance is continuing to stabilise or improve across all jurisdictions, according to Fitch.

    Default rates for Spanish transactions have stabilised at 1.2% after a rise in impairments over the past two years. Elevated loan prepayment rates have also returned to their pre-2009 levels, which is attributed to originating banks restructuring non-performing loans, the agency says. Despite .......

    News Round-up 10 June 2011

  • Borrower advocate adds md

    Jeff Spelman has joined 1st Service Solutions as md, responsible for developing capital sources within its Equi-Debt Solutions platform. The newly launched platform offers equity and debt to borrowers of non-performing CRE loans.

    Spelman was previously vp and senior portfolio manager at Hunt Realty Investments, where he was responsible for creating and implementing strategies for real estate operating companies and .......

    Job Swaps 3 May 2011

  • CMBS loan sale underway

    Mission Capital Advisors and Rockwood Real Estate Advisors are conducting a CMBS special servicer loan sale on behalf of an unidentified seller. The sale comprises 11 non-performing and bankruptcy assets, with an unpaid principal balance of US$99.7m.

    Office collateral accounts for US$56.6m of the portfolio, retail for US$25.5m, hospitality for US$7.2m, manufactured housing for US$5.6m, medical office for US$2.5m and .......

    News Round-up 11 April 2011

  • Foreclosure complexity highlighted

    A bill passed last week in the Arizona Senate that voids foreclosures without full title history has re-emphasised the complexity of foreclosure requirements. If the bill passes in the House, many borrowers could begin challenging foreclosures in this non-judicial state - thereby pushing foreclosure timelines even further out.

    Chain of title remains an important issue, according to NewOak ceo Ron .......

    News 2 March 2011

  • Mortgage servicing revisited

    CRE special servicer-style model touted for RMBS

    The FHFA's initiative to restructure the GSE mortgage servicing model (see SCI 19 January) has re-energised debate on servicer compensation. While there is agreement that the current system has many shortcomings, some believe that the proposed changes don't go far enough.

    Ron D'Vari, ceo of NewOak Capital, says the issue at stake is how to incentivise servicers to do a .......

    News Analysis 15 February 2011

  • NPL criteria explained

    Fitch has published its global rating criteria for non-performing loan securitisations. The agency's analysis of non-performing loan transactions is predicated on the level and timing of recoveries, from the disposition of residential and CRE-secured loans that are in default and/or properties that have been repossessed.

    Recoveries, which are stressed incrementally higher for each rating scenario, are the basis for the .......

    News Round-up 4 February 2011

  • Servicing compensation initiative launched

    The Federal Housing Finance Agency (FHFA), Fannie Mae and Freddie Mac are to work on a joint initiative with the Department of Housing and Urban Development (HUD). The initiative will consider alternatives for future mortgage servicing structures and servicing compensation for single-family mortgage loans.

    The goals in this initiative are to improve service for borrowers, reduce financial risk to servicers .......

    News Round-up 19 January 2011

  • Starwood snaps up non-performing portfolio

    Starwood Capital Group has acquired a non-performing commercial loan portfolio with an outstanding principal balance of US$157m from a Midwest regional bank. The portfolio was purchased for 40 cents on the dollar and represents a price of around 32% of initial capitalisation.

    There are 137 commercial loans in the portfolio, with concentrations in Florida, Indiana, Michigan, North Carolina and Ohio. .......

    Job Swaps 7 January 2011

  • CRE CDO delinquencies drop again

    Continuing resolutions and extensions of non-performing loans resulted in a second-straight decline for US CREL CDO delinquencies, according to Fitch. Delinquencies fell to 12.2% in November from 12.8% in October.

    "Though CREL CDO delinquencies have lingered between 12% and 13% over the last year, realised losses have continued to accumulate," says Fitch director Stacey McGovern.

    Approximately US$890m of realised losses have .......

    News Round-up 17 December 2010

  • CRE borrower service launched

    1st Service Solutions has launched 1st Equi-Debt Solutions, which aims to offer equity and debt to borrowers of non-performing CRE loans as part of their debt restructure. The new firm was formed by Ann Hambly, founder and ceo of 1st Service Solutions, and Mike Meisenbach, founder of Asset Advisory Alliance. Meisenbach will be based in Texas, where the firm is .......

    Job Swaps 13 December 2010

  • Liquidation line

    Public sales proving positive for US CMBS market

    US CMBS liquidation volumes via public sales average almost US$200m a month and are expected to remain elevated as unprecedented amounts of distressed assets are worked through. All of the major special servicers are selling into these auctions, with prices having increased significantly since the beginning of the year due to better financing opportunities.

    "It is compelling from an NPV .......

    News Analysis 25 October 2010

  • Artificial constraints

    Distressed CRE prices pushing beyond fundamental value

    An artificially constrained supply of US distressed commercial real estate is driving asset prices up beyond their fundamental value. Investors are consequently being urged to analyse more carefully both sources of property and their valuations.

    Carlos Vigon, md at NewOak Capital, notes that the primary method of identifying value in the current market is to buy non-performing debt, convert it .......

    News Analysis 15 September 2010
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