CMBS loans are priced by taking the appropriate swap or Treasury rate and adding a credit spread, which compensates the lender for their work during the loan application and underwriting process.
CMBS Pricing: What You Need to Know
Pooling and Servicing Agreements for CMBS Loans
Pooling and Servicing Agreements (PSAs) are highly detailed legal documents that define all aspects of a CMBS loan, including the rights and responsibilities of the borrower, the lender, the master servicer, the special servicer, and the CMBS investors.
Can You Get a Rate Lock on a CMBS Loan?
Due to market fluctuations, CMBS lenders often re-price their loans before closing. However, some lenders do offer 30-day rate locks to help protect borrowers from rate increases.
What is CMBS Syndication?
CMBS syndication occurs when multiple lenders pool their funds together to issue a large CMBS loan. This reduces the risk of having the entire loan on any one lender’s balance sheet.