CONDUIT CMBS LENDERS
Wall Street Conduit Lenders or Commercial Mortgage Backed Secuirty Lenders (CMBS) have strict guidelines that may be complex to the average investor. We have the direct access to the lending programs of these Wall Street conduit lenders through the close relationships we have formed with industry leaders.
There are two basic categories that commercial real estate first mortgage debt can be broken down to. The first category are loans that are to be securitized, also known as "CMBS Loans". The second category is portfolio loans which are originated by a lender and is held on their books through maturity. In a conduit CMBS scenario, several single mortagage loans of differing size, location, and property type are pooled then moved to a trust. A series of bonds are then issued from the trust which vary in amount of yield, payment priority and duration.
Investors then may choose which CMBS bonds to buy based on the level of risk they are comfortable with. Every month, interest received from the pooled loans is paid to the investors, starting the investors holding the highest rated bonds until all accrued interest is paid. The same thing occurs with principal as payments are made. This sequential payment structure is generally referred to as the "waterfall."
There are many myths that borrowers have about CMBS conduit lenders especially with respect to how these loans are serviced once they have been securitized. In fact, the entire process of getting a CMBS loan can be daunting without our professional services.
The first step to getting a CMBS loan is easy. Simply call us at 1-800-595-1474 for a consultation with one of our friendly and experienced CMBS loan specialists.