I’m in London this week for the annual European conference of the Commercial Mortgage Securitization Association (CMSA).
The media have been focused on the presidential race, but, when it looked like Obama was going to win, and we left home in Notting Hill to go join “the masses,” we found the streets mostly empty. Granted it was already 2 a.m. Wednesday morning local time, but I thought we might see more activity.
We headed over to the U.S. embassy in Mayfair because we heard there was a party there. When we got there, it looked “too” official with everyone dressed up and fairly conservative. So we headed to Piccadilly Circus / Leicester Square where the rowdy people were hanging out (it is comparable to Times Square in New York).
Here’s where we found the party.
We went to a bar called Yates that was hosting an all-night election party. We paid the cover, and when we went inside, there were two definite groups in the bar. In the front were about McCain supporters. From the middle to the back of the bar, there were probably 500 people pulling for Obama.
We set up shop in the middle of Obama territory and waited for Pennsylvania and Ohio to come in. I got a call from my wife who was at an election party in San Francisco when they called Ohio. In London, they had not made the call yet so I announced it in the bar. People were skeptical but then as if on cue, the broke the news that Obama was going to carry Ohio and Pennsylvania.
McCain supporters in front, Obama supporters in back …
Case closed: Obama won.
The place erupted — shots, champagne, hugs, tears — the whole thing. Brits were congratulating Americans for our ability to reinvent ourselves. If felt cool to be an American again in Europe. The U.S. backpackers might not have to pretend to be from Canada anymore!
After it was clear Obama won, I limped back to my hotel and watched the acceptance speech from my room (about 5 a.m. now). Inspiring, emotional, historic. When I finally passed out, I was drained but happy.
— — —
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.pngjimflaherty2008-11-06 00:31:562020-09-17 00:32:59Watching the U.S. election in London
I find myself in London on this historical election night. I am attending the annual European conference of the Commercial Mortgage Securtization Association (CMSA), and the excitement around the U.S. election is intense.
https://www.cmbs.com/wp-content/uploads/2019/03/cmbslogo030619.png00jimflahertyhttps://www.cmbs.com/wp-content/uploads/2019/03/cmbslogo030619.pngjimflaherty2008-11-04 00:33:222020-09-17 00:35:20CMSA Promoting European IRP Version 2
So far during this consolidation, our enterprise software business has been coping pretty well.
Bank of America buying Countrywide and RBS buying ABN AMRO were negative events in the fact that, since all four were users, four contracts became two. But, we were still left with fair multiyear maintenance contracts. Bank of America buying Merrill Lynch and Lehman failing were, in a way, good for Backshop because a two big securitized players that were not on Backshop are now gone.
In all those deals, we survived the consolidation and ended up as the system of record. In this deal, PNC is the acquiring bank. Within the different divisions of NatCity, the use of Backshop is limited to the Structured Product Groups in Stamford and not the balance sheet commercial real estate group run out of Cleveland.
While I have been in the Board Room in the NatCity tower in downtown Cleveland presenting to the chief credit officer and various division heads, and we have good support among many groups to convert the entire NatCity portfolio onto Backshop, as of now Backshop is only used by SPG.
So, the question is, after PNC closes the deal and completes the acquisition, will the system of record be Backshop or will it be the PNC system?
I do not know much about the PNC loan origination system. I never tried hard to sell them because they own Midland Loan Services who in around 2002 bought an origination software company run by Mike Matheson. We competed against them in RFPs from 2002 to 2005, but they eventually pulled out of the origination business and focused on Enterprise, their loan servicing system. Nonetheless, PNC was on Midland’s system, and they were not going to change to Backshop so why waste time trying to sell?
But now, PNC just bought an ASP License to use Backshop (my standard ASP license is assumable in the event of acquisition). Midland is not in the third party origination software business, so, as far as I can tell, PNC is on a custom origination system. I’m sure that system works perfectly well for their internal use, but that proprietary approach does not advance the cause of standardizing commercial real estate underwriting.
I’ve read the combined bank will be the fifth largest in the country. An important player for sure and one that, I hope, will get on board with Backshop. But, I’d be going into the weekend with a little less stress if PNC, the acquiring bank, was on Backshop and NatCity, the one being acquired, was on Midland’s system.
I’ll keep the blog posted as this plays out over the next several months. …
— — —
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.pngjimflaherty2008-10-24 00:35:382020-09-17 00:36:24NatCity was bought by PNC Today
Watching the U.S. election in London
/0 Comments/in What's going on /by jimflahertyI’m in London this week for the annual European conference of the Commercial Mortgage Securitization Association (CMSA).
The media have been focused on the presidential race, but, when it looked like Obama was going to win, and we left home in Notting Hill to go join “the masses,” we found the streets mostly empty. Granted it was already 2 a.m. Wednesday morning local time, but I thought we might see more activity.
We headed over to the U.S. embassy in Mayfair because we heard there was a party there. When we got there, it looked “too” official with everyone dressed up and fairly conservative. So we headed to Piccadilly Circus / Leicester Square where the rowdy people were hanging out (it is comparable to Times Square in New York).
Here’s where we found the party.
We went to a bar called Yates that was hosting an all-night election party. We paid the cover, and when we went inside, there were two definite groups in the bar. In the front were about McCain supporters. From the middle to the back of the bar, there were probably 500 people pulling for Obama.
We set up shop in the middle of Obama territory and waited for Pennsylvania and Ohio to come in. I got a call from my wife who was at an election party in San Francisco when they called Ohio. In London, they had not made the call yet so I announced it in the bar. People were skeptical but then as if on cue, the broke the news that Obama was going to carry Ohio and Pennsylvania.
McCain supporters in front, Obama supporters in back …
Case closed: Obama won.
The place erupted — shots, champagne, hugs, tears — the whole thing. Brits were congratulating Americans for our ability to reinvent ourselves. If felt cool to be an American again in Europe. The U.S. backpackers might not have to pretend to be from Canada anymore!
After it was clear Obama won, I limped back to my hotel and watched the acceptance speech from my room (about 5 a.m. now). Inspiring, emotional, historic. When I finally passed out, I was drained but happy.
— — —
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
CMSA Promoting European IRP Version 2
/0 Comments/in Industry news, What's going on /by jimflahertyWhat a week to be in London!
I find myself in London on this historical election night. I am attending the annual European conference of the Commercial Mortgage Securtization Association (CMSA), and the excitement around the U.S. election is intense.
Read more
NatCity was bought by PNC Today
/0 Comments/in Industry news /by jimflahertySo far during this consolidation, our enterprise software business has been coping pretty well.
Bank of America buying Countrywide and RBS buying ABN AMRO were negative events in the fact that, since all four were users, four contracts became two. But, we were still left with fair multiyear maintenance contracts. Bank of America buying Merrill Lynch and Lehman failing were, in a way, good for Backshop because a two big securitized players that were not on Backshop are now gone.
In all those deals, we survived the consolidation and ended up as the system of record. In this deal, PNC is the acquiring bank. Within the different divisions of NatCity, the use of Backshop is limited to the Structured Product Groups in Stamford and not the balance sheet commercial real estate group run out of Cleveland.
While I have been in the Board Room in the NatCity tower in downtown Cleveland presenting to the chief credit officer and various division heads, and we have good support among many groups to convert the entire NatCity portfolio onto Backshop, as of now Backshop is only used by SPG.
So, the question is, after PNC closes the deal and completes the acquisition, will the system of record be Backshop or will it be the PNC system?
I do not know much about the PNC loan origination system. I never tried hard to sell them because they own Midland Loan Services who in around 2002 bought an origination software company run by Mike Matheson. We competed against them in RFPs from 2002 to 2005, but they eventually pulled out of the origination business and focused on Enterprise, their loan servicing system. Nonetheless, PNC was on Midland’s system, and they were not going to change to Backshop so why waste time trying to sell?
But now, PNC just bought an ASP License to use Backshop (my standard ASP license is assumable in the event of acquisition). Midland is not in the third party origination software business, so, as far as I can tell, PNC is on a custom origination system. I’m sure that system works perfectly well for their internal use, but that proprietary approach does not advance the cause of standardizing commercial real estate underwriting.
I’ve read the combined bank will be the fifth largest in the country. An important player for sure and one that, I hope, will get on board with Backshop. But, I’d be going into the weekend with a little less stress if PNC, the acquiring bank, was on Backshop and NatCity, the one being acquired, was on Midland’s system.
I’ll keep the blog posted as this plays out over the next several months. …
— — —
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