I hope this post finds you healthy, prosperous and vaccinated. Gratefully, we are all three here. There’s been a lot going on, and I’ve not posted in a while, so here is the update.
We launched our dedicated tool for CMBS borrowers to support their quarterly servicer reporting requirements. If you have a CMBS loan, you can easily find your loan in our CMBS database, then we pre-load all the loan, servicer and property information — including all the operating statements that you have submitted to your servicer.
So, if you have had your CMBS loan for 5 years and you sign up for CMBS.com, once you find and load your deal, you will see 20 operating statements (4 per year for 5 years). For your 21st submission, modify the last one you sent and send in the new one through our system. Going forward, the process will be automated.
For rent rolls, since they are not part of the IRP, you will have to upload the first one and then let our tool automate it from there.
For more details about automated quarterly CMBS servicer reporting, check out our help pages for CMBS Borrower Reporting.
Speaking of rent rolls, if you are a reader of this blog you know I believe they need to be disclosed as part of CMBS transactions, and it turns out I am not the only one. In my last post, I talked about the whistle blower complaint and the University of Texas study about lenders inflating the income on properties. I recently came across this interview. Starting at about 3:30 is a pretty good description of how CMBS “liar loans” are made.
To be clear, using our new CMBS borrower reporting tool does not mean your rent rolls will be disclosed to the investors or the public. It just automates the submission to your servicer, who will only disclose what is in the IRP. But the issue of rent roll disclosure is a story that is not going away.
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Jim Flaherty is CEO of CMBS.com and the creator of the Backshop loan origination system. He is a trained credit professional with experience installing enterprise underwriting systems for commercial real estate lenders and investors.