{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

KIC000025 - CMBS FIN 428 Prof Hood Commercial Mortgage...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
CMBS FIN 428 Prof Hood Commercial Mortgage loans o Commercial mortgage loans are for income-producing properties. o These properties include i. multifamily properties ii office buildings iii. industrial properties (including warehouses) iv. shopping centers -e. hotels vi health care facilities o Commercial mortgage loans are non-recourse loam. o This means that the lender can only look to the income- producing properly backing the loan for interest and principal repayment. '~<¥)'T'¢1l{!:iOWP""",,,,,~~, "',. r"""ohho '" F"",>io< '-'011 Commercial Mortgage Loans (continued) o Indicators of Potential Performance o If there is a default on a commercial mortgage loan, the lender looks to the proceeds from the sale oftbe property for repayment and has no recourse to the borrower for any unpaid balance. o Two measures have been found to be key indicators of the potential credit performance: i. debt-to-service coverage ratio .ii. loan-to-value ratio """""''''fi'o'o"",.",,,,£<lI>Oor'''''' ""''''''''' ..... ".,~ ...
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}