twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
Commercial Mortgage News | CRE Lender Directory | CRE Statistics
Stories about commercial lending on multifamily, office, retail and industrial properties.


CMBS Terms Easing

Requirements easing for amortization, reserves

Jan. 31, 2013

By Mortgage Daily staff


Competition is heating up in the market for commercial mortgage-backed securities, leading conduit originators to ease requirements for amortization and reserves.

Credit quality metrics on commercial real estate loans securitized in the fourth-quarter 2012 have returned to 2004 levels.

That leaves the latest vintage favorably positioned compared to issuances from the CMBS market peak reached in 2006 and 2007.

Among the areas to increase in quality were debt-service coverage ratios that exceed 1.60 times.

The DSCR level is at "a high point since the sector revived in 2010" and is a sign that CRE fundamentals are recovering, Moody's Investors Service said in its US CMBS Q4 Review: Conduit Loan Leverage Stable in Second Half 2012, Cautious Credit Outlook for 2013 report.

Another positive for the sector was that fewer conduit loans were backed by poor-quality malls.

Conduit loan leverage held steady at around 100 percent.

Moody's predicts that capitalization rates will rise over the next few years as a result of higher interest rates. But increased interest rates will drive down the historically high DSCRs.

Delinquency of at least 30 days for all CMBS vintages finished 2012 at 7.6 percent, an improvement from 8.15 percent at the end of 2011, based on CMBS rated by Morningstar Credit Ratings LLC.

Stepped-up competition in the CMBS market has Moody's cautious about its outlook for this year.

"Although loan quality is presently at a favorable point in the cycle, we maintain a cautious outlook for conduit credit in 2013," Moody's Director of Commercial Real Estate Research Tad Philipp explained in the report. "There is a high level of competition among conduit loan originators, and borrowers are gaining traction in their quest for higher proceeds and fewer protective features such as amortization and reserves."

The New York-based ratings agency said it doesn't expect CMBS issuers to alter their business models or practices in order to arrest credit deterioration.

In addition, many "sophisticated investors" can't maintain a process for credit discipline because they lack the time needed to analyze and compare transactions.

next story

back to current headlines


Mortgage Backed Securities | MBS News | MBS Statistics
News about commercial and residential mortgage-backed securities. Stories about ratings actions and changes to servicer ratings. Studies and reports about the performance of securitizations and problem vintages and classes. Subprime, Alt-A, home equity and j u m b o analysis.


Secondary Marketing News | Correspondent Lender Directory
Mortgage portfolio trades and forward commitments. Correspondent lending, r e p u r c h a s e s and warehouse news. Secondary marketing statistics and lawsuits.



Logout forgot
password?

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders