Unraveling CMBS Proving Difficult for Banks

An interesting comment in an article that some might have missed.  GlobeSt.com reports that Eastern Consolidated CEO Peter Hauspurg said  “part of the whole thing that’s keeping these banks glued up with the CMBS is the fact [that] no one has been able to unravel the loans they understood when they made them.” Hauspurg noted that there are thousands of loans now clogging the banks, distracting the top officials who are all trying to make sense of them.  And their complications cause new problems, he explains, “the market has the specter of commercial real state players actually throwing their own properties into default, just to get the attention of special servicers who they hope will modify their loans.”