Have CMBS lenders learned from their mistakes that led to today’s high default rates, or will they lapse into making irresponsible loans again as the commercial real estate recovery gains momentum?
Brian Furlong, managing director of New York Life Investments, who oversees the company’s CMBS investments and structured whole loan activities, raised the question Tuesday during a panel discussion at MBA’s commercial/multifamily real estate finance conference in Atlanta.
The delinquency rate for CMBS multifamily loans in January stood at an unhealthy 15.39 percent, according to Trepp LLC. In sharp contrast, the delinquency rates were well under 1 percent for multifamily loans originated by life companies and loans held or insured by Fannie Mae and Freddie Mac.
“The question becomes what led to that difference among industries, and has it been addressed and has it been fixed?” asked Furlong.
Read more...Will the Next Real Estate Downturn Have a Different Outcome for CMBS? via REBusinessOnline.com
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