Archive for June, 2020

Coronavirus drives $21B of CMBS loans to special servicing

About $21 billion of CMBS loans have been moved to special servicing since the middle of March -- more than double the total for all of 2019, according to Fitch Ratings. Hotel and retail properties have accounted for the most transfers to special servicing. Read full story Read more

Lawmakers ask for relief for CMBS borrowers

More than 100 members of Congress are requesting that the Federal Reserve and the Trump administration support real estate borrowers who are unable to keep up with payments on debt tied to CMBS. "Without a long-term relief plan in the face of an elongated crisis, CMBS borrowers could face a historic wave of foreclosures starting this fall, impacting local communities and destroying jobs for Americans across the country," according to a letter from the lawmakers. Read full story Read more

Fannie, Freddie announce financial advisers

Fannie Mae has hired Morgan Stanley and Freddie Mac has hired JPMorgan Chase as financial advisers, a necessary step toward recapitalization and an exit from government custodianship. Federal Housing Finance Agency Director Mark Calabria has told lawmakers the exit plans have been delayed by the coronavirus pandemic and could be further affected by borrowers' repayment difficulties. Read full story Read more

CBO: Coronavirus recovery could take 10 years

The economy will require as long as a decade to recover from the coronavirus pandemic, the Congressional Budget Office says. The CBO has cut its forecast for economic output from 2020 to 2030 by $7.9 trillion, or 3% of GDP. Read full story Read more