The economic shutdown precipitated by COVID-19 is dealing a severe blow to the commercial real estate market. The Commercial Mortgage-Backed Securities (CMBS) market is now signaling a potential implosion: delinquencies are skyrocketing, ratings agencies are busy downgrading CMBS deals, investors are busy shorting the market and whistleblowers have alleged widespread fraud in the CMBS industry. Will we see a replay of the RMBS litigation explosion triggered by the Financial Crisis of a decade ago? Commercial loan originators, CMBS sponsors and trustees, investors and litigators are all invited to hear about potential claims, defenses and strategies for preparing for a possible CMBS litigation wave on the horizon.
What You Will Learn
- Understand how the Covid-19 pandemic is impacting the commercial real estate market in the U.S.
- Review why those market forces could spell trouble for Commercial Mortgage-Backed Securities
- CMBS Trusts and how they work
- How a surge of CMBS litigation, much like the RMBS litigation spawned by the Financial Crisis, is a very real possibility
- Consider who is likely to be sued in CMBS litigation and what the claims and defenses will look like