In a mid-November deal:
One shopping mall-related US$47.5m loan from the US$1.1bn GSMS 2013-GCJ16 conduit - a refinancing of a maturing loan in an earlier deal - was kicked out of a new CMBS that priced in early November.And in another deal a week later:
Questions arose about how the borrower renegotiated the new terms via a discounted payoff (DPO) of the old loan, and whether the servicer extracted the most recovery value for investors in the old deal
Last week, meanwhile, the ninth-largest loan in a mixed-use commercial real estate (CRE) pool, also a refinancing of a troubled maturing loan, was removed from the US$873m MSBAM 2013-C13 conduit two days after launch but prior to pricing.
Sources said there were disclosure issues regarding the servicer selling the older loan to an investor who conducted a DPO and extracted a higher value for the underlying property than what the servicer had got.