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Valuation

Frequent valuations can be essential for pre-recession risk management of CMBS B-pieces

Frequent valuations can be essential for pre-recession risk management of CMBS B-pieces

Rising values for commercial real estate (CRE) have supported prices for commercial mortgage-backed securities (CMBS) for years. But with increasing talk about a cyclical peak in property values, or even a recession within the next couple of years, CMBS investors as a whole and B-piece investors in particular are starting to think about how they can prepare for the possibility of price declines.

Prices in the MSR market are strong — for pristine portfolios

Prices in the MSR market are strong — for pristine portfolios

“Strong” is an adjective frequently used to describe the prices paid for residential mortgage servicing rights (MSRs) in recent months. Beyond the glimmer, however, is the reality that only specific slices of overall portfolios are trading very well, and a lot of MSRs out there are not going to market, according to advisory firm MountainView Financial Solutions, a Situs company.

Geography quiz: where are residential mortgages prepaying the fastest and slowest?

Geography quiz: where are residential mortgages prepaying the fastest and slowest?

The seven states with the fastest prepayment rates for home mortgages are all in the West – Idaho, Colorado, Arizona, Utah, Washington, Nevada and Oregon. That’s according to a report issued by MountainView Financial Solutions, a Situs company, for the 12-month period ending April 30.

What drives valuations of re-performing residential whole loans?

What drives valuations of re-performing residential whole loans?

Re-performing loans (RPLs) are defined as loans in which payments had previously ceased for at least three months but have been consistently made for the past 12-24 months. New buyers of RPLs and longtime holders of the assets continue to question how best to quantify the risks associated with loan performance and how that translates into pricing. Both investors continue to evaluate their prepayment, default and loss assumptions in the context of a tightening market over the past 18 months, particularly when portfolios have loans with such varied characteristics and performance history.