Forum Spotlight: Portfolio Lenders Insurance Company Sub-Forum Update

CRE Finance World, Summer 2012

Forum Spotlight: Portfolio Lenders Insurance Company Sub-Forum Update Managing Director, Managing Director,Todd EverettRichard Coppola Head of Real Estate Finance Head of Real Estate Fixed Income TIAA-CREF Principal Real Estate Investors T implemented in spring 2011 and initially developed to •to 2008 levels.Losses continue to be at nominal levels and seem to be revertingBased upon the data submitted, certain trends have been identified:he Portfolio Lenders Insurance Company Sub-Forum hascontinued its efforts to provide value to its constituentbase during the last 12 months. The primary focus hasbeen the further refinement of the portfolio lender survey, collect previously unavailable life insurance company industry •Delinquencies have trended upwards slightly, but are still at very performance data. The initial effort successfully captured performance manageable levels below 0.4%. data from portfolio lenders representing more than half the industry. •Portfolio LTVs have trended downward to the 60% level. Building on the success of the inaugural survey, the Sub-Forum leadership has been hard at work seeking to improve the effort. These early results continue to indicate the very high quality of There has been a coordinated effort with Trepp to co-brand the the portfolios of this segment of the industry. The trends seem to survey and to help to significantly improve the data integrity and indicate that portfolio lenders have dealt with their issues in 2009 survey process through this collaboration. Trepp is a recognized and 2010 as losses were recognized in those periods and have leader in the industry reporting on loan performance data. The trended downward in 2011. Similarly, as values have recovered, appeal to coordinate the portfolio lender segment of the industry portfolio LTVs have also shown improvement. with the CMBS segment through Trepp’s deep experience reporting on the conduit market is a powerful tool for delivering a meaningful The Sub-Forum leadership group has been pleased with the survey. Trepp also brings a depth of reporting capabilities that we collaboration with Trepp to further institutionalize the survey effort. continue to seek to utilize to maximize the value of the end product. The level of participation has been strong and we are working to We believe Trepp’s involvement and the potential integration of both further expand the reach of the survey. The latest survey builds Portfolio Loan and CMBS performance data exemplifies the goals upon the five year historical data collected last year, adding of CREFC to become the voice for commercial real estate finance. another year’s performance metrics. We are exploring ways to compare portfolio lender performance history with comparable The survey was distributed in February 2012 incorporating the CMBS performance data. new format as jointly developed with Trepp. The preliminary results are in, and participation has again been at approximately half the The Portfolio Lender Insurance Company Sub-Forum would like to industry. The Sub-Forum leadership is working on formatting the continue to provide Members with an opportunity to share views results for presentation at the June Annual Conference and to be on best practices in investment and portfolio management and will used to further entice industry participation. look for further opportunities to do so at the June Annual Conference. CRE Finance World Summer 2012 70


CRE Finance World, Summer 2012
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