Financing and lending

Commercial Mortgage-Backed Securities (CMBS)

Commercial mortgage-backed securities are bonds backed by pools of loans secured by commercial properties, with investors receiving payments from the borrowers' loan payments.

Why it matters

CMBS lenders pool and sell loans, so they rely on standardized third-party reports. Many require an ASTM E2018 property condition assessment and a Phase I environmental report before closing. Reserve and repair requirements from those reports can shape loan terms.

Source: investor.gov

Where we discuss it

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