The Troubled Ghosts of Christmas Past

A recent Reuters article highlighted two legacy CMBS loans that had been worked out of their former deals, came back to the market in New Issue deals only to be kicked out for their past transgressions.

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.
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

 And in another deal a week later:

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.