Pre-Risk Retention Pricing

The latest Dodd/Frank facet makes application Christmas Eve and is anticipated that the complicated risk retention will add to the cost of a CMBS execution. Several originators are testing retention structures prior to the mandate to confirm sizing and pool pricing. Others continue to press for recordations by September 30th to take advantage of the current compressed rates and securitize prior to the unknown impact of the regulations. A handful of CMBS originators have contacted George Smith Partners with “Blue Light Specials” with razor thin spreads for stabilized transactions that will fund and record by the end of September.