I celebrated my 42nd birthday with my family over the long weekend by renting a house in Discovery Bay, a community located on the Sacramento River Delta 70 miles from San Francisco. While the girls drove, my son and I went up by boat.
https://www.cmbs.com/wp-content/uploads/2019/03/cmbslogo030619.png00jimflahertyhttps://www.cmbs.com/wp-content/uploads/2019/03/cmbslogo030619.pngjimflaherty2009-05-26 21:06:022020-09-16 21:07:43San Francisco to the Midwest by Boat
The MBA Commercial/Multifamily Servicing and Technology Conference I just attended was much more about business issues that servicers face (covenant violations, defaults, foreclosures and a general lack of liquidity) than how technology can help solve those issues. While words like transparency and efficiency were sometimes used, the belief that technology is need to achieve these goals seemed lacking.
https://www.cmbs.com/wp-content/uploads/2019/03/cmbslogo030619.png00jimflahertyhttps://www.cmbs.com/wp-content/uploads/2019/03/cmbslogo030619.pngjimflaherty2009-05-19 21:08:162020-09-16 21:10:34Big Easy showed early seeds of transparency
We announced at the MBA Commercial/Multifamily Servicing and Technology Conference in New Orleans that C-MISMO has authorized the creation of new standards for rent rolls and operating statements.
To better aid all CRE investors/lenders, we have reduced our focus on the CMSA’s CMBS-centered IRP 6 (which we support) to instead concentrate on establishing broader commercial real estate standards.
I was named Chairperson of the effort. We plan to have these standards finalized by the end of summer.
Setting a CRE standard while supporting IRP 6
If it includes full rent rolls and is adopted by the CMSA, IRP 6 will solve the transparency issues for CMBS deals.
However, getting IRP 6 approved and adopted is a big challenge, especially because the critical players (the servicers and the trustees) are resistant to making the required investment. Also, while IRP 6 has the potential to fix reporting for CMBS, it does not automatically fix the problem for commercial real estate lenders in general; the IRP has data and structures (bond level data, for example) that are not needed by portfolio lenders.
Therefore, MISMO is moving ahead with adopting standards for the two most critical missing pieces: rent rolls and operating statements. These standards will be identical to the “rent roll” and “operating statements” containers found in IRP 6, as both are based on the already-approved MISMO XML schema.
We think pushing ahead with independent C-MISMO rent roll and operating statement standards will not only solve a critical need for portfolio lenders, but will also help the CMSA with its adoption challenges, as the benefits of the transparency improvements will become evident and the servicers can start implementing the change.
— — —
Jim Flaherty is CEO of CMBS.com and the creator of the Backshop loan origination system. He is a trained credit professional with experience installing enterprise underwriting systems for commercial real estate lenders, rating agencies and investors.
https://www.cmbs.com/wp-content/uploads/2019/03/cmbslogo030619.png00jimflahertyhttps://www.cmbs.com/wp-content/uploads/2019/03/cmbslogo030619.pngjimflaherty2009-05-17 21:10:532020-09-16 21:11:45C-MISMO to create rent roll and operating statement standards – Flaherty to chair
San Francisco to the Midwest by Boat
/0 Comments/in What's going on /by jimflahertyI celebrated my 42nd birthday with my family over the long weekend by renting a house in Discovery Bay, a community located on the Sacramento River Delta 70 miles from San Francisco. While the girls drove, my son and I went up by boat.
Read more
Big Easy showed early seeds of transparency
/0 Comments/in Industry news, Industry standards /by jimflahertyThe MBA Commercial/Multifamily Servicing and Technology Conference I just attended was much more about business issues that servicers face (covenant violations, defaults, foreclosures and a general lack of liquidity) than how technology can help solve those issues. While words like transparency and efficiency were sometimes used, the belief that technology is need to achieve these goals seemed lacking.
Read more
C-MISMO to create rent roll and operating statement standards – Flaherty to chair
/0 Comments/in Industry standards /by jimflahertyWe announced at the MBA Commercial/Multifamily Servicing and Technology Conference in New Orleans that C-MISMO has authorized the creation of new standards for rent rolls and operating statements.
To better aid all CRE investors/lenders, we have reduced our focus on the CMSA’s CMBS-centered IRP 6 (which we support) to instead concentrate on establishing broader commercial real estate standards.
I was named Chairperson of the effort. We plan to have these standards finalized by the end of summer.
Setting a CRE standard while supporting IRP 6
If it includes full rent rolls and is adopted by the CMSA, IRP 6 will solve the transparency issues for CMBS deals.
However, getting IRP 6 approved and adopted is a big challenge, especially because the critical players (the servicers and the trustees) are resistant to making the required investment. Also, while IRP 6 has the potential to fix reporting for CMBS, it does not automatically fix the problem for commercial real estate lenders in general; the IRP has data and structures (bond level data, for example) that are not needed by portfolio lenders.
Therefore, MISMO is moving ahead with adopting standards for the two most critical missing pieces: rent rolls and operating statements. These standards will be identical to the “rent roll” and “operating statements” containers found in IRP 6, as both are based on the already-approved MISMO XML schema.
We think pushing ahead with independent C-MISMO rent roll and operating statement standards will not only solve a critical need for portfolio lenders, but will also help the CMSA with its adoption challenges, as the benefits of the transparency improvements will become evident and the servicers can start implementing the change.
— — —
Jim Flaherty is CEO of CMBS.com and the creator of the Backshop loan origination system. He is a trained credit professional with experience installing enterprise underwriting systems for commercial real estate lenders, rating agencies and investors.
www.cmbs.com
www.backshop.com