As MISMO’s liaison to the CMSA, I have spent the past few weeks calling around to contacts at Lenders, Rating Agencies, Servicers and Investors, to see what each firm’s position is on IRP 6. Other than the servicers, most firms I spoke with did not know the specific issues with IRP 6 and had no official position. After explaining the benefits of IRP 6 several times, and getting several firms to send in emails of support, it occurred to me we have a marketing problem.
To address this problem, we are putting together a press piece explaining the benefits of IRP 6 and releasing it through MISMO. Plus, I will keep dedicating space on the blog to promoting IRP 6. Toward that end, i case you want to support IRP 6, I drafted a form email to save you some time.
The text of the message is on the remainder of this post.
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Dear CMSA IRP Committee:
Our firm, YOUR FIRM’S NAME HERE, is an investor in commercial real estate debt, equity and CMBS.
For our CMBS investments, we have found the existing available data insufficient to perform a “bottom-up” analysis of the bonds. Specifically, we need to perform an analysis of the underlying real estate that requires access to a current rent roll, operating statements and current debt amount/terms. We have access to the debt information and sporadic access to operating statements but have not found any source for current rent rolls.
Therefore, we strongly recommend that the CMBS industry improve its transparency to current and potential investors by adopting, without delay, the new proposed standards as described in IRP version 6.
The primary benefits we see are 1) operating statements, bond, property, and loan data better formatted in XML and 2) access to basic tenant information (tenant size, contract rent, reimbursement amount, start date, end date) on all tenants.
Thank you for your consideration.
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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, rating agencies and investors.