Wednesday, August 22, 2012

LNR’s ‘Window’ Goes Live in Bid to Appease Investors via WSJ

LNR Property LLC, the largest servicer of distressed loans in commercial mortgage-backed securities, on Tuesday took a new tack in defense of its methods to fix defaults on loans by increasing the transparency of practices often scorned by investors.

Tobin Cobb, LNR’s charismatic co-chief who helped lead Deutsche Bank’s commercial real estate group through the real estate boom, has been known to personally challenge analysts who publish notes questioning loan modifications by LNR. Now, with the firm up for sale and drawing bids of at least $1 billion, it is taking new pains to tell its side of the story.

LNR, which is engaged with more than $22 billion of distressed loans, and other “special servicers” have been criticized for going too easy on indebted borrowers or for conflicts of interest that undermine their job of representing debt holders when a loan goes into default.

Read more...LNR’s ‘Window’ Goes Live in Bid to Appease Investors - Developments - WSJ

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