A new rent-roll reporting standard promises to improve underwriting and commercial real estate investment management
Reasonable people can disagree about whether specific provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act go too far in regulating financial institutions and instruments, but few would argue with the intent of the law as stated upfront in the 848-page document: “To promote the financial stability of the United States by improving accountability and transparency in the financial system.”
Indeed, transparency of property-level information is key to accurately value a commercial or multifamily investment throughout its lifecycle, including at the origination of a deal and during the ongoing asset management of a deal, and to gauge relative risk.
With the launch of our new Professional software, we’re making the power of our Backshop enterprise CRE platform available to individuals and small groups.
I’m leaving Miami after attending the annual CREFC Investor Conference. The conference, now in its 25th year, is usually the best place to find out what people are thinking and get a prediction for the year. We had great weather, and a friend of mine hosted me on a nice-sized boat to cruise around Miami Bay — making the trip that much nicer.
In 2018 we significantly improved our Backshop commercial real estate software. Here are some highlights:
Last week we spread the word and met some new people at #CREtech in Los Angeles. While we are well known in CRE debt circles, we are not yet well known on the equity side of the business — and these events are attended by equity players.
We’re proud to announce three new enhancements to your CMBS.com account.
I always pause to remember and honor the victims of 9/11, and I try to reflect and celebrate the spirit of camaraderie and selflessness that grew in the country after the attacks.
I’ll be posting later in the week from Los Angeles, where we’ll be exhibiting at the CREtech conference. But for now, in the spirit of post 9/11 unity, check out what Bob Weir said on Mount Tamalpais this weekend about not letting your love fade away.
We’re excited to announce our first college securitization analysis contest. Model your chosen securitization using our data and tools — and win $2,500.
I usually talk about CRE issues here, but I have a 4th of July story that’s too good not to share.
The release of our Marketplace is a huge step in completing our vision to bring commercial real estate online. Model and market your deals using the same data backbone the big enterprises use — with the convenience of the Web and the confidence of standardized data.
New language brings consistency, efficiency and accuracy to exchange of key property data
WASHINGTON, D.C. – December 12, 2016 – The Mortgage Industry Standards Maintenance Organization (MISMO®) has released a new proposed data standard for the exchange of rent roll information on commercial property. The proposed standard is open for public comment. The public comment period will remain open from Monday, December 12, 2016 through Friday, January 13, 2017. The proposed rent roll standard is expected to be elevated to Candidate Recommendation status shortly thereafter. The proposed standard is designed to provide a consistent set of data points and definitions to use in financing and managing commercial property assets.
After blogging about MISMO and CRE data standards for years, I can finally say the new rent roll standard is ready for public comment. Thanks in large part to the efforts by Fannie Mae, we will release the MISMO XML rent roll standard at the MBA’s annual convention starting Oct. 23 in Boston.
If you’re an owner, broker, lender, appraiser, investor, agency or other CRE participant, you need to pay attention.
(This was originally posted Sept. 11, 2008)
It is September 11, 2008 and I have started preparing content for my soon-to-be released-blog, CMBS 2.0. The history of the company is deeply connected to September 11, 2001 and what better day than the 7-year anniversary of the attacks to chronicle that history.
It’s been a while since I’ve posted on C-MISMO, but finally there is some real progress to report. We are releasing an updated rent roll standard for a 60-day public comment period, and Fannie Mae is going to announce its support for the standard this week in Dallas at the MBA Commercial Servicing and Technology Conference.
For years I have been talking and blogging about the importance of transparency, standardization and XML in the CRE market. Well, I decided it was time to be more proactive in making these concepts a reality by creating inexpensive tools for small CRE operations and providing free tools for everyone who wants to experience the benefits of transparency.
It’s been about 7 months since the SEC came out with the final rules for REG AB II, and the industry response is becoming clear.
CREFC, the industry trade group that controls the IRP, has hosted several meetings with the IRP working group, and the emerging strategy for compliance with REG AB II XML reporting is disappointing.
It’s been about two weeks since the SEC released its final rules on disclosure requirements for CMBS, and I have some more details to report.
Today is the 6th anniversary of this blog, which I write to follow the regulatory response to the financial crisis and how the implementation of the Dodd Frank law affects the CMBS market.
If you are a follower, you know I believe the regulators’ primary role should be to require transparency, and I advocate that position. This blog and my advocacy for transparency in the CMBS market is in part inspired by the events of 9/11/01.
Check out my very first post that gives that story:
Today the SEC announced its final decision on Reg AB. They held firm by requiring XML data for CMBS to be posted on EDGAR. That is a big deal and a huge win for transparency: each CMBS loan will require wide open disclosure of about 160 data elements.
“All data – especially sensitive data – wants to be free.”
On Feb. 25 the SEC reopened the comment period for REG AB II, with focus on the method used to disclose asset level data.
The 19-page memorandum (download the PDF here) opens with:
“This memorandum describes a potential approach for disclosure of asset-level information to investors and potential investors in asset-backed securities taking into account the potential sensitivity of certain asset-level information. In particular, instead of filing and making publicly available certain types of asset-level information on EDGAR as described in the proposal by the Securities and Exchange Commission for enhanced regulation of ABS offerings in 2010, this approach would require issuers to make asset-level information available to investors and potential investors through an issuer’s Web site which would enable issuers to address privacy concerns associated with such disclosures, including through restricting access to potentially sensitive information.”
The SEC pulled Reg AB II rule-making from the Feb. 5 agenda.
So nothing happened. There’s no word on why it was pulled or when we will hear back.
The SEC announced that on Feb. 5 they will propose final changes to loan level data disclosures for all asset backed securities including CMBS. This rule, known as Reg AB II, is an update to the original Reg AB that governed securitization rules during the financial crisis.
The America’s Cup recently finished here in San Francisco, and the event really delivered.
It’s been a housekeeping month with MISMO as we get ready to re-introduce and formally approve the rent roll and operating statement standards.
After more than two years of silence, federal regulators have begun issuing the final rules for securitization reform called for under Dodd Frank. This week, they issued the rules on risk retention.
More than 1,000 people attended the Commercial Real Estate Finance Council’s annual conference two weeks ago. While the mood was mostly upbeat, signs indicate not all is perfect in the market.
I attended two MISMO meetings in the last few weeks, and we are making progress.
I just got back from San Diego where I attended the MBA CREF/Multifamily Housing Convention & Expo along with about 2,600 other people. The mood was as optimistic as I have seen since the crash. Brokers have deals that need financing, and lenders have money to lend at historically low rates. With these perfect conditions, if you have a good deal, it is a great time to be a borrower.
CREFC is cautious but upbeat, the IRP Committee wants to skip IRP 6, and the Regulatory Committee is moving toward smart compromise.
The good times are back in the CMBS market with the fall deals pricing well and being over-subscribed. Spreads are so tight that top quality assets are getting rates of less than 4% and almost everyone is predicting growth going forward. The 2012 year-end volume is predicted to be about $40-45 billion and some people have predicted $60 billion next year. Of course everyone knows that macro events can change the market dynamic very quickly, but at least for now the industry is feeling very positive.
By Matt Robinson
MISMO revitalized its Government Forum to better share and exchange information between regulators, other government agencies and the mortgage industry about the benefits of broader adoption of MISMO data standards.
Check out the full story at www.mortgagebankers.org
I attended a dinner last week with the joint leadership of the Mortgage Industry Standards Maintenance Organization (MISMO). Attendees came from the residential mortgage business, the commercial mortgage business and the Mortgage Bankers Association (MBA, which owns and manages MISMO). I was invited because I serve as co-chair of the board for the Commercial Mortgage Industry Standards Maintenance Organization (known as cMISMO).
Today marks my fourth year writing this blog.
I started CMBS 2.0 to provide an insider’s perspective on how financial reform plays out in the Commercial Mortgage Backed Securities (CMBS) industry. My first post was on September 11, 2008, right before Lehman crashed, and I closely followed the passage of Dodd Frank in 2010. I assumed by now I’d be writing about how the new rules are working, but they they still haven’t been finalized.
From what I’m hearing, the risk retention rules are to be finalized in first quarter 2013, and REG AB changes should be finalized by mid 2013.
So on we go.
The big annual CMBS conference was held last week in Washington, DC — and the mood was cautious.
The launch of CMBS.com Pro has been going well. Our new commercial real estate deal management tool, which includes CMBS data, was very well received at the ICSC conference in Las Vegas. We had several people sign up on the spot, and one property owner from the Midwest stated we were his favorite product at the show. The attendance was massive at the show but the Marketplace Mall (where we were) did not get the same traffic as the Leasing Mall. Maybe next year we will change locations. Nonetheless, it was a great venue to launch the new product.
Sausalito, CA (May 17, 2012) – A CMBS.com Pro account brings the power of Web-based enterprise software and data to all commercial real estate professionals — at prices as low as $20 per month, without the hassles of spreadsheets, desktop software or expensive data services.
CMBS.com Pro comes from the same team that revolutionized the commercial real estate lending industry with Backshop enterprise software. Backshop enables major players to run their entire CRE businesses in a holistic, flexible and secure Web-based environment by integrating direct cap and DCF lease-by-lease underwriting tools into a pipeline management and report writing application.
CMBS.com Pro is powered by Backshop and offers three packages to serve all commercial real estate players. Services range from $20 per month to $80 per month and deliver powerful capabilities including:
- Never again rely on spreadsheets and other desktop software.
- Access CMBS data at never-before-seen prices.
- Manage your deal pipeline and maximize productivity.
- Value collateral using direct capitalization and discounted cash flow methods.
- Model debt and equity returns.
- Compare your deal to properties that have CMBS debt.
- Quickly write and publish reports.
- Store and manage documents and contacts easily and securely.
- Standardize your deals in the industry-accepted format.
- Serve up to 10 users at any of your locations.
Bringing power to everyone
“We are excited to bring CMBS.com Pro to the commercial real estate community at large,” said CMBS.com and Backshop CEO Jim Flaherty. “The existing deal modeling tools and data services available to the small companies and individual users are based on old technology and priced to support old business models. Having solved these same problems for enterprise clients for years, we are proud to offer commercial real estate players of all types and sizes the same power used by the big guys at never-before-seen pricing.”
Flaherty says a CMBS.com Pro account is perfect for a wide range of CRE players:
- CRE professionals who need a pipeline/document system or work with any types of deals, debt or equity
- Owners, brokers and appraisers who need to model and present valuation scenarios or want info on CMBS comps
- Existing CMBS borrowers who need to manage reporting or want loan comps for their CMBS debt
- Anyone who currently uses Excel or Argus™ to model deals. CMBS.com delivers more power, costs less and eliminates the hassles of spreadsheets and desktop software.
To learn more about a CMBS.com Pro account, visit http://www.CMBS.com
The first CMBS deals of 2012 have priced well, and interest rates being quoted by the conduit shops are now sub 5 percent for high quality CMBS loans. Investor demand has been strong enough to allow the originators to offer rates that start with a 4.
That makes CMBS more attractive vs. other loan products and supports positive momentum for a successful year. The market is on pace to reach $35 billion — and there is more and more talk of doing substantially better than that.
The annual CREFC conference was last week in Miami and, while attendance was slightly up, the mood was way worse than last year. 2011 started great (with momentum from a strong second half of 2010), but the summer spread widening caused losses and basically shut down the second half of 2011.
Going into 2012, there is very little momentum. Originations are starting at a standstill as opposed to a running start. However, it was still a fun few days, and the return to Miami Beach from Washington, DC was a welcomed change.