CRE Finance Council is a trade association that is...

  • Dedicated exclusively to the nearly $6 trillion commercial real estate finance industry
  • Committed to promoting strong & liquid debt markets across platforms
  • The meeting place for industry professionals
  • The platform for establishing best practices, industry standards & federal policy
  • Comprised of approximately 400 companies and 19,000 individual members
Events
More
September 18
New York

CREFC News

News Archive

News

CREFC's July 2024 Monthly CMBS Loan Performance Report

August 21, 2024

CRE Finance Council has released a report on CMBS loan performance for July.*

Key takeaways:

DELINQUENCY RATE CLIMBS AGAIN

 

  • Conduit/SASB CMBS combined delinquency of 5.43%
    • Delinquency rate increased 8 bps in July, following a surge of 38 bps in June
    • Delinquency rate has increased five of the last seven months; on a YOY basis, the overall combined delinquency rate is up 102 bps (5.43% vs. 4.41% in July 2023)
  • Office accounted for two-thirds of newly delinquent loans
    • ~$1.9 billion in office loans became newly delinquent in July
    • Office delinquency rate is now above 8% for the first time since November 2013 when the rate was at 8.58%
    • Convergence of work-from-home (WFH)-induced demand shock, high benchmark, mortgage, and cap rates, and a pullback in bank lending will continue to present office financing headwinds
  • June delinquency rate is still 489 bps below 10.32% peak in June 2020 – the height of pandemic-related lockdowns
  • Loans in special servicing (SS) rose 7 bps to 8.30% in July, up 168 bps YOY; despite the modest increase on the month, the SS rate remains elevated
    • SS rate is at a three-year high and has increased in every month of 2024. it is now 152 bps higher than the 6.78% mark at year-end 2023.
  • In a report dated 8/2/24, BofA Global Research examined YTD pay-off trends for conduit loans
    • In one analysis, pay-off rates were calculated by property type and loan size; successful pay-off rates decreased as loan size increased, with office loans facing the greatest challenges
    • BofA notes that the lower pay-off rates for larger loans may reflect “sponsors of larger loans believing that they have leverage over special servicers”


*Source: Trepp. CMBS data in this report reflect a total outstanding balance of $609.5B: 57.8% ($352.3B) conduit CMBS, 42.2% ($257.2B) single-asset/single-borrower (SASB) CMBS.

Click here to download the full report. Contact Raj Aidasani for more information on CMBS loan performance.


Contact  

Raj Aidasani
Managing Director, Research
646.884.7566

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2024 CRE Finance Council. All rights reserved.
CREFC's July 2024 Monthly CMBS Loan Performance Report
August 21, 2024
CRE Finance Council has released a report on CMBS loan performance for July.

News

CREFC Announces 2024 Capital Markets Conference

August 14, 2024

NEW YORK, Aug. 14, 2024 –
The CRE Finance Council (CREFC), the trade association that exclusively represents the nearly $6 trillion commercial and multifamily real estate finance industry, is pleased to announce its September 18, 2024, Capital Markets Conference in New York City.

This one-day event features a series of panels examining a wide range of issues top of mind for commercial real estate (CRE) finance market participants who have managed a protracted period of elevated interest rates, a rapidly evolving regulatory environment, and an array of unique challenges that impact income-producing properties.

The Conference features seasoned market professionals who will detail how the industry is managing a sizable wall of CRE debt maturities. Today’s challenges are particularly acute given a still elevated rate environment and uncertainty surrounding CRE property valuations. Panelists will focus on key servicing issues in today’s challenging markets, such as refinancing commercial mortgages at today’s substantially higher mortgage rates relative to the original loan. Other key topics include borrowers’ search for alternative sources of liquidity. Attendees will learn about the health of the securitized market, the role of debt funds, and how changes in regulations, notably Basel III, impact bank lending, and general market liquidity.

Featured panels include:

  • Wall of Maturities – Fact or Fiction
  • State of the Market: Servicer Perspective
  • Bank Balancing Act: Challenges and Opportunities for Lending
  • Out of the Shadows? Nonbank Lending in Today’s Economy
  • New Issue Roundtable: State of the Securitized Market 


When:
September 18, 2024

Where:

Conrad New York Downtown

102 North End Ave

New York, NY, 10282


Program

Registration
Live stream options are available.

"Commercial real estate finance market participants have endured a barrage of unprecedented challenges that include high borrowing costs, escalating expenses for property owners, and dramatic changes in how tenants work in commercial properties,” said Lisa Pendergast, Executive Director, CREFC.

"This year’s comprehensive program considers the CRE finance market’s risks and opportunities at a time when participants face a wave of debt maturities, and sources of liquidity are shifting with the emergence of new capital sources amid an evolving regulatory environment.”

To learn more about CREFC's upcoming conferences and events, please visit here.

Contact:

Aleksandrs Rozens

arozens@crefc.org

646-884-7567

Contact 

Aleksandrs Rozens
Senior Director, Communications

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2024 CRE Finance Council. All rights reserved.
CREFC Announces 2024 Capital Markets Conference
August 14, 2024
CRE Finance Council (CREFC) is pleased to announce its September 18, 2024, Capital Markets Conference in New York City.

News

High Court Overruling of Chevron Doctrine Stirs Strong Reactions, Uncertainty

July 30, 2024

The Supreme Court’s June 28 overruling of the Chevron Doctrine continues to provoke strong reactions.

  • The Loper Bright v. Raimondo decision requires courts to exercise their independent judgment in determining the meaning of an ambiguous statute.
  • As reported in a previous CREFC Policy and Capital Markets Briefing, this ruling was celebrated by many Conservatives and business groups who have long sought to curb executive branch power.
  • However, critics contend it will exacerbate uncertainty in the regulatory sphere as businesses ramp up lawsuits against regulation.

What they’re saying. Republican and Democratic lawmakers recently introduced strikingly different bills in the wake of the Chevron decision.

On July 23, Sen. Bill Cassidy (R-LA) introduced a bill that would require agency officials to communicate with and testify before Congress regarding certain agency actions, stating:

“For decades, the Executive Branch has exploited Chevron deference to increase its power beyond what Congress intended, all while skirting congressional oversight. Now, with Chevron deference overturned, Congress must work to rein in the Executive Branch and hold it accountable to the people and their elected representatives.”

Furthermore, according to Politico, Cassidy sent letters to various labor-related agencies including the DOL, NLRB, EEOC, and EBSA requesting information on how they would comply with the ruling.

  • Reps. Steve Scalise (R-LA), James Comer (R-KY), and other House Republicans are also asking the agencies to review regulations in the new post-Chevron world.

Yes, but: Sen. Elizabeth Warren (D-MA) and several other Democratic senators introduced the “Stop Corporate Capture” bill, which would codify the Chevron doctrine and reform the regulatory process “to end corporations’ influence over the rulemaking process, prioritize scientific and public integrity, and reduce delays in implementation of laws.”

According to Warren:

“Giant corporations are using far-right, unelected judges to hijack our government and undermine the will of Congress. The Stop Corporate Capture Act will bring transparency and efficiency to the federal rulemaking process, and most importantly, will make sure corporate interest groups can’t substitute their preferences for the judgment of Congress and the expert agencies.” 

  • CREFC will continue to monitor these developments and report back to you.
  • Stay tuned for a CREFC webinar that will explore the implications of a post-Chevron world.
Please contact Sairah Burki (sburki@crefc.org) with any questions.
 

Contact 

Sairah Burki
Managing Director, Head of Regulatory
Affairs & Sustainability
703.201.4294
sburki@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2024 CRE Finance Council. All rights reserved.
High Court Overruling of Chevron Doctrine Stirs Strong Reactions, Uncertainty
July 30, 2024
The Supreme Court’s June 28 overruling of the Chevron Doctrine continues to provoke strong reactions.

We are lenders, investors & servicers.​

Become a Member

CREFC offers industry participants an unparalleled ability to connect, participate, advocate and learn!
Join Now

Sign Up for eNews