Sometimes when I tell a “civilian” that my career is servicing commercial mortgage loans (“CMLs”) the initial response is, “Is that like collections?” I usually gently respond that I hope not. When I discuss the same with someone in the real estate finance industry the response is often, “So you guys collect payments?” That is […]
All Hail, The Mighty Boutique Servicer!
As the CMBS industry was coming into its own, I spent most of the 1990s working for what was then a top-3 commercial mortgage loan servicer in terms of assets under management (“AUM”). Thanks to our largest client, an innovative Japanese investment bank, we went from being a small division of a white shoe life company […]
Does Servicing Matter? Ask A CMBS Borrower
CMBS lending has done much for the commercial real estate lending industry since its rise in the early 1990s. It liquified the capital markets making large amounts of funds available to real estate investors of all sizes and levels of sophistication. It created reliable fixed income investment opportunities for institutional investors who purchased the higher […]
Mortgage Brokerage And Servicing: Best Combo Ever?
Anyone who makes their living in the commercial real estate mortgage brokerage business will tell you it is a mercenary trade. Common headwinds are keeping a steady supply of qualified customers, having enough capital sources to allow for an array of financing options for those customers and the sheer competition within the markets served. As if those […]
Servicing High Yield Real Estate Debt
I had an enlightening conversation with a dealmaker from a real estate debt fund. He specialized in bridge, mezzanine and high LTC construction loans. He told me he was moving on from high yield lending to aggregating distressed debt (“do you know where I can find any?”). While the higher yield space remains flush with optimistic entrepreneurs and […]
Fancy French Cuisine And Servicing Are The Same
Every now and then I get ambitious and try to cook a dish that is well over my head. It is usually for a dinner with friends which means there is no Plan B. It is fun but there is always some sticker shock and high anxiety. Not only are the ingredients not run-of-the-mill but the process requires […]
Changing Servicers Ain’t All Bad
Every year I attend Mortgage Bankers Association’s annual servicing convention. I get to spend three days with many of my favorite people. We catch up on each other’s lives and we talk about an industry that many of us have been in for decades. A recurring theme among many of my colleagues in the lending business […]