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Forum Spotlight: IG Bondholders

November 19, 2024

The IG Bondholders Forum’s Leadership Working Group, which includes Rajesh Bansal (Forum Chair), Adam J. Smith (Chair-Elect), and Richard Razza (Past Chair), sets agendas and priorities for the Forum and represents investors on CREFC’s Policy Committee.

Key Investment-Grade Bondholder Focus Areas:

• CRE CLO Surveillance: The CRE CLO Surveillance template is being developed to provide standardized information to investors in a usable Excel-based format. CREFC will host a meeting at the January conference in Miami to solicit additional feedback from all constituents. We aim to have the first draft of the surveillance file ready for use by Q1 2025.
• Ongoing dialogue with stakeholders of the forum (IG investors) to understand their concerns and identify solutions.
• The Leadership Group is concerned with loan extension risk due to higher interest rates. Notably, corporate single-A rated bonds continue to outperform AAA-rated CMBS.

Looking ahead, leaders are focused on working with servicers and trustees to improve responsiveness and access to loan and deal information in a timely manner.

What’s next: Forum leaders look forward to presenting CREFC members with an update on their market sectors in Miami. As June 2025 approaches, the chairs will seek nominations for the next Chair-Elect to join their leadership slate.

To join the IG Bondholders Forum, please register here.

For any forum-related questions, please contact Rohit Narayanan (RNarayanan@crefc.org).

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Forum Spotlight: GSE/Multifamily Lenders

November 5, 2024

Ahmed Hasan (Forum Chair), David Haynes (Chair-Elect), and Kate Whalen (Past Chair), as well as Jason Griest and Alonzo White (both GSE representatives), form the “Leadership Working Group” of CREFC’s GSE/Multifamily Lenders Forum. This group sets agendas and priorities for the Forum and represents their constituencies on CREFC’s Policy Committee.

Key GSE/Multifamily Lenders Focus Areas:

• Sustained elevated interest-rate environment and the uncertainty of how quickly, or if, long-term interest rates will change
• Investor appetite for increased agency issuances
• Upcoming presidential election and 2025 FHA scorecard/updates that may impact 2025 business

What They Are Saying: The GSE multifamily sector continues to stand out as an area of strong credit despite the challenges of a sustained high-rate environment and the impact inflation has had on property performance.

The GSEs have seen a significant increase in multifamily mortgage originations in the second half of 2024. The uptick is driven by:

• A decrease in U.S. Treasury rates and
• Increased investment sales activity.

Despite the current volatility in economic data and benchmark rates, there is optimism that the momentum will continue and the market expand in 2025.

By the Numbers: CREFC polled the audience at its June 2024 annual conference and found that 56% of participants expected GSE multifamily issuance to end 2024 north of $100 billion. Today, that expectation likely will come to fruition, thanks to a significant increase in originations spurred on by a sharp third-quarter decrease in U.S. Treasury rates.

Key Forum Policy Issue: Tenant Protections

In July 2024, FHFA issued a new policy for multifamily properties financed by the GSEs to include a minimum of a:

1. 30-day notice of a rent increase
2. 30-day notice of a lease expiration
3. Five-day grace period for late rent payments

These standards will go into effect for all new loans on or after February 20, 2025.

What’s Next: CREFC’s DC Symposium on Nov. 13 will feature a conversation between Freddie Mac CEO Diana Reid and Bob Foley, Partner, TPG Real Estate and Chief Financial Officer, TPG RE Finance Trust, Inc. Mr. Foley is also the acting Chair of CREFC’s Board of Governors. Symposium attendees are sure to be keenly interested in the housing agency CEO’s perspectives on key issues impacting the industry and how Freddie Mac provides liquidity, stability, and affordability for housing in communities nationwide.

GSE Forum leaders look forward to presenting CREFC members with an update on their forum at CREFC’s January Conference in Miami, to be held from January 12-15, 2025.

As June 2025 approaches, the chairs will seek nominations for the next Chair Elect to join their leadership slate. To join the GSE/Multifamily Lenders Forum, please register here.

Please contact Rohit Narayanan (RNarayanan@crefc.org) with any questions

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The CRE Finance Council Announces New Chairs for Industry Forums

June 11, 2024

New Chairs and Chair-Elects Introduced at Annual June Conference

NEW YORK, June 11, 2024 – The CRE Finance Council (CREFC) announced today new Chairs for the 2024-2025 industry Forums. The new Forum leadership was introduced at CREFC’s Annual June Conference in New York City.

CREFC’s Forums represent specific market constituencies that drive the U.S. commercial real estate finance industry. Forums include:

• Alternative Lenders and High Yield Investors
• B-Piece Investors
• GSE/Multifamily Lenders
• Investment-Grade Bondholders
• Issuers
• Portfolio Lenders
• Servicers

Each of these Forums interacts and addresses issues critical to their business sector and works to achieve solutions that serve a common purpose. CREFC’s Forums manage disparate and converging market views, advocate a consensus of positions to policymakers and lawmakers, educate members, develop market best practices and standards, and work toward the betterment of the entire commercial real estate finance market.

The Incoming slate of Forum leaders includes:

Alternative Lenders & High Yield Investors. CREFC welcomes Rachel Hunter-Goldman (KKR) as Chair-Elect, Samantha Rotchford (MSD) as Chair, and Samir Tejpaul (Square Mile Capital Investments) as Past Chair.

B-Piece Investors: CREFC welcomes Frank Yin (KKR) as Chair-Elect, Peter Lindner (Rialto) as Chair, and Jason Nick (LNR) as Past Chair. In 2023-2024, Lyndsay Stephenson (Prime Finance Partners) served as Past Chair.

GSE/Multifamily Lenders: CREFC welcomes David Haynes (CBRE) as Chair-Elect, Ahmed Hasan (Capital One) as Chair, and Kate Whalen (BMO) as Past Chair. In 2023-2024, the Past Chair was Emily Schultz (Berkadia Commercial Mortgage). Alonzo White (Fannie Mae) and Jason Griest (Freddie Mac) serve as government-sponsored enterprise representatives.

Investment-Grade Bondholders: CREFC welcomes Adam Smith (DWS) as Chair-Elect, Rajesh Bansal (Quiq Capital) as Chair, and Richard Razza (Webster Bank) as Past Chair. In 2023-2024, Jane Rivers (T. Rowe Price) served as Past Chair.

Issuers: CREFC welcomes Shaishav Agarwal (Deutsche Bank) as Chair-Elect, Brigid Mattingly (Wells Fargo) as Chair, and Jane Lam (Morgan Stanley) as Past Chair. In 2023-2024, David Schell (BMO Capital Markets) served as Past Chair.

Portfolio Lenders – Banks: CREFC welcomes Kristin Khanna (Barclays) as Chair-Elect, Rob Grudzinski (U.S. Bank) as Chair, and Scott Dixon (Truist) as Past Chair. In 2023-2024, Jonathan Salzinger (Bank of America) served as Past Chair.

Portfolio Lenders – Insurance Company: CREFC welcomes Melissa Farrell (PGIM) as Chair-Elect, Kevin Pivnick (Blackstone) as Chair, and Chris Miculis (Nuveen) as Past Chair. In 2023-2024, Stefanie Stewart (Voya Investment Management) served as Past Chair.

Servicers – Servicing Administration: CREFC welcomes Dana Jo Martino (Berkadia) as Chair-Elect, Adam Fox (Fitch Ratings) as Chair, and Leslie Hayton (Wells Fargo) as Past Chair. In 2023-2024, Stacy Ackermann (K&L Gates) served as Past Chair.

Servicers – Special Situations: CREFC welcomes Alex Killick (CWCapital) as Chair-Elect, Pam Dent (Freddie Mac) as Chair, and Tony Yousif (SVN) as Past Chair. In 2023-2024, Andrea Helm (Midland Loan Services) served as Past Chair.

“We want to welcome the new members of our CREFC industry Forums and thank existing and past Forum members for their dedication and excellent work,” said Lisa Pendergast, Executive Director of CREFC.

“For 30 years, CREFC has served as the voice of the now $6 trillion commercial real estate finance industry and CREFC’s industry Forums continue to play a key role in ensuring all industry voices are heard and respected. CREFC’s Forums serve a vital industry function, as they represent key components of the CRE finance markets. A core function of Forum leaders is to work toward consensus among their constituents and then advocate those positions to other market segments and to policy and lawmakers. Forum leaders are also charged with assisting the development of industry best practices and implementing new initiatives critical to their business sectors. I and the entire CREFC community are grateful for our Forum leaders and their contributions and dedication to CRE finance.” 

Contact:

Aleksandrs Rozens

arozens@crefc.org

646-884-7567

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The CRE Finance Council Announces New Chairs for Industry Forums

June 11, 2024

New Chairs and Chair-Elects Introduced at Annual June Conference

The CRE Finance Council (CREFC) announced today new Chairs for the 2024-2025 industry Forums. The new Forum leadership was introduced at CREFC’s Annual June Conference in New York City.

CREFC’s Forums represent specific market constituencies that drive the U.S. commercial real estate finance industry. Forums include:

• Alternative Lenders and High Yield Investors
• B-Piece Investors
• GSE/Multifamily Lenders
• Investment-Grade Bondholders
• Issuers
• Portfolio Lenders
• Servicers

Each of these Forums interacts and addresses issues critical to their business sector and works to achieve solutions that serve a common purpose. CREFC’s Forums manage disparate and converging market views, advocate a consensus of positions to policymakers and lawmakers, educate members, develop market best practices and standards, and work toward the betterment of the entire commercial real estate finance market.

The Incoming slate of Forum leaders includes:

Alternative Lenders & High Yield Investors: CREFC welcomes Rachel Hunter-Goldman (KKR) as Chair-Elect, Samantha Rotchford (MSD) as Chair, and Samir Tejpaul (Square Mile Capital Investments) as Past Chair.

B-Piece Investors: CREFC welcomes Frank Yin (KKR) as Chair-Elect, Peter Lindner (Rialto) as Chair, and Jason Nick (LNR) as Past Chair. In 2023-2024, Lyndsay Stephenson (Prime Finance Partners) served as Past Chair.

GSE/Multifamily Lenders: CREFC welcomes David Haynes (CBRE) as Chair-Elect, Ahmed Hasan (Capital One) as Chair, and Kate Whalen (BMO) as Past Chair. In 2023-2024, the Past Chair was Emily Schultz (Berkadia Commercial Mortgage). Alonzo White (Fannie Mae) and Jason Griest (Freddie Mac) serve as government-sponsored enterprise representatives.

Investment-Grade Bondholders: CREFC welcomes Adam Smith (DWS) as Chair-Elect, Rajesh Bansal (Quiq Capital) as Chair, and Richard Razza (Webster Bank) as Past Chair. In 2023-2024, Jane Rivers (T. Rowe Price) served as Past Chair.

Issuers: CREFC welcomes Shaishav Agarwal (Deutsche Bank) as Chair-Elect, Brigid Mattingly (Wells Fargo) as Chair, and Jane Lam (Morgan Stanley) as Past Chair. In 2023-2024, David Schell (BMO Capital Markets) served as Past Chair.

Portfolio Lenders – Banks: CREFC welcomes Kristin Khanna (Barclays) as Chair-Elect, Rob Grudzinski (U.S. Bank) as Chair, and Scott Dixon (Truist) as Past Chair. In 2023-2024, Jonathan Salzinger (Bank of America) served as Past Chair.

Portfolio Lenders – Insurance Company: CREFC welcomes Melissa Farrell (PGIM) as Chair-Elect, Kevin Pivnick (Blackstone) as Chair, and Chris Miculis (Nuveen) as Past Chair. In 2023-2024, Stefanie Stewart (Voya Investment Management) served as Past Chair.

Servicers – Servicing Administration: CREFC welcomes Dana Jo Martino (Berkadia) as Chair-Elect, Adam Fox (Fitch Ratings) as Chair, and Leslie Hayton (Wells Fargo) as Past Chair. In 2023-2024, Stacy Ackermann (K&L Gates) served as Past Chair.

Servicers – Special Situations: CREFC welcomes Alex Killick (CWCapital) as Chair-Elect, Pam Dent (Freddie Mac) as Chair, and Tony Yousif (SVN) as Past Chair. In 2023-2024, Andrea Helm (Midland Loan Services) served as Past Chair.

“We want to welcome the new members of our CREFC industry Forums and thank existing and past Forum members for their dedication and excellent work,” said Lisa Pendergast, Executive Director of CREFC.

“For 30 years, CREFC has served as the voice of the now $6 trillion commercial real estate finance industry and CREFC’s industry Forums continue to play a key role in ensuring all industry voices are heard and respected. CREFC’s Forums serve a vital industry function, as they represent key components of the CRE finance markets. A core function of Forum leaders is to work toward consensus among their constituents and then advocate those positions to other market segments and to policy and lawmakers. Forum leaders are also charged with assisting the development of industry best practices and implementing new initiatives critical to their business sectors. I and the entire CREFC community are grateful for our Forum leaders and their contributions and dedication to CRE finance.”

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Forum Spotlight: Investment-Grade Bondholders

November 20, 2023

Together, Richard, Rajesh, and Jane form the “Leadership Working Group” for the IG Bondholders Forums. This group sets the agendas and priorities for the Forum, as well as represents investors on CREFC’s Policy Committee.

Key Investment-Grade Bondholders Focus Areas:

• CRE CLO Surveillance template is being developed to provide standardized information to investors in a usable Excel-based format.
• Dialogue with stakeholders of the forum (IG investors) to understand their concerns and identify solutions.
• Work on improving reporting in Conduit and SASB transactions as the buy-side looks for standardized financials from borrowers and better disclosure from servicers with regard to loan modifications and fees.
• Leadership is concerned with loan extension risk as a result of higher interest rates; as a result, corporate single-A rated bonds continue to outperform AAA-rated CMBS.
• In the floating rate market, the replacement of SOFR caps upon expiration is an important topic, especially as loans lack the ability to cover debt service in the current interest rate environment. We continue to focus efforts on disclosure improvements and updating the IRP for these items.
• Transaction volumes are down considerably leading to decade low volume in the Conduit/SASB markets.

Looking ahead, leaders are focused on working with servicers to improve reporting accuracy and timeliness. Rising insurance costs in coastal markets put added stress on landlords.

Key Policy Issues:

• SEC’s Conflict of Interest in Securitization Proposal: The definitions are broadly written and could engulf numerous CMBS participants and a broad range of “conflicted activities” that go beyond shorting a transaction. CREFC submitted two comment letters on the issue and is engaging with lawmakers on Capitol Hill.
• 15c2-11 Public Disclosure of 144A Bond: The SEC recently issued an order exempting 144A fixed-income securities from 15c2-11 disclosure. CREFC and its members urged the SEC and Congress to take action to prevent the application of 15c2-11 to fixed income securities. The exemption order is a major win for the industry.

What’s next? Forum leaders look forward to presenting CREFC members with an update on their forum at the Annual January Conference in Miami. Soon after, the chairs will seek nominations for the next Chair-Elect to join their leadership slate.

To join the IG Bondholders Forum, please register here. For any forum related questions, please contact Kathleen Olin at kolin@crefc.org

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Forum Spotlight: B-Piece Investors

November 13, 2023

Together, Jason, Peter, and Lyndsay form the “Leadership Working Group” for CREFC’s B-Piece Investors Forum. Importantly, this group — taking their cues from B-Piece Investor Forum members — sets the agendas and priorities for the Forum, as well as represents their constituencies on CREFC’s Policy Committee.

Key B-Piece Investors Focus Areas:

• Working to develop best practices for newly originated loans with regards to appropriate cash-management triggers and language to be implemented for “go-dark” provisions.
• Insurance premiums continue to be a focus as coastal markets are increasingly becoming cost prohibitive to obtain insurance required under standard loan agreements.
• Five-year CMBS transactions are driving volume and more transactions are getting done, but caution is still warranted as the dynamics for these transactions are still not tested.

Looking ahead: Rates appear to have peaked and hopeful stabilizing, allowing spreads to tighten and new-issue CMBS volume to grow relative to 2023. The Forum would like to continue the push toward better use of technology to improve the speed of reporting from borrowers to servicers and trustees to investors.

In 2024, B-Piece investors see key challenges as:

• Maintaining credit quality in the current rate environment as higher rates have pushed DSCRs to near historical lows.
• The office sector story is still unresolved. Valuations and ability to underwrite remain challenging.
• Diversity among pools is low, making the ability to manage risk more challenging.

Key Policy Issues:

• SEC’s Conflict of Interest in Securitization Proposal: The definitions are broadly written and could engulf numerous CMBS participants, including B-Piece investors, and a broad range of “conflicted activities” that go beyond shorting a transaction. CREFC submitted two comment letters on the issue and is engaging with lawmakers on Capitol Hill.
• 15c2-11 Public Disclosure of 144A Bond: The SEC recently issued an order exempting 144A fixed-income securities from 15c2-11 disclosure. CREFC and its members urged the SEC and Congress to take action to prevent the application of 15c2-11 to fixed income securities. The exemption Order is a major win for the industry.

What's next: Forum leaders look forward to presenting CREFC members with an update on their forum at the Annual January Conference in Miami. Soon after, the chairs will seek nominations for the next Chair Elect to join their leadership slate.

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