Commercial/Multifamily Briefs

Michael Tucker mtucker@mba.org

March 21, 2019


Collateral Analytics Launches New Commercial Automated Valuation Model
Collateral Analytics, Honolulu, launched a new automated valuation model to help lenders monitor commercial property values and provide access to CRE valuations.

"In contrast to residential properties, commercial property values are much more dependent on the rental rates and terms of the underlying tenant leases," CA said. The Collateral Analytics Commercial AVM was created to address a burgeoning need for monitoring property values, not just for mortgage loans but for estimating and updating total return estimates.

Morningstar Credit Ratings to Begin Rating CRE CLOs 
Morningstar Credit Ratings, New York, announced it will begin rating pools of transitional commercial real estate collateral, commonly called commercial real estate collateralized loan obligations.

Morningstar will use its CRE Credit Model as the basis for calculating expected losses for a pool of transitional commercial real estate loans. The CRE CLO version of the company's CRE Credit Model incorporates changes to account for structural features not present or allowable under a real estate mortgage investment conduit, or REMIC. Specifically, Morningstar modified its credit model to account for future funding components and ramp-up and reinvestment periods. The company also adjusted its approach to assessing diversity within the CRE CLO transaction.

Freddie Mac Pricies $562M Multifamily Small Balance Loan Securitization
Freddie Mac, McLean, Va., priced its SB60 offering, a multifamily mortgage-backed securitization backed by small balance loans underwritten by Freddie Mac and issued by a third-party trust.

The company expects to guarantee $562 million in Multifamily SB60 Certificates, which it said should settle on or about March 22. Freddie Mac Small Balance Loans generally range from $1 million to $6 million and are usually backed by properties with five or more units. This is the third SB Certificate transaction in 2019.

Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC served as Co-Lead Managers and Joint Bookrunners.

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