Commercial Mortgage Backed Security

Securitization in Commercial Real Estate

Securitization in Commercial Real Estate

Securitization is the process in which commercial or residential real estate loans are pooled together, packaged into a financial product, and sold to investors on the secondary market. Not all types of commercial real estate loans are securitized, but many are. For instance, CMBS and conduit loans are always securitized and sold as commercial mortgage backed securities. In contrast, many, but not all HUD multifamily loans and Fannie Mae/Freddie Mac multifamily loans are securitized.

Conduit Loan in Commercial Real Estate

Conduit Loan in Commercial Real Estate

A conduit loan, also known as a CMBS loan, is a commercial real estate loan which is secured by a mortgage on a commercial property. These loans are structured by conduit lenders, commercial or investment banks.

CMBS: Commercial Mortgage Backed Securities in Commercial Real Estate

CMBS: Commercial Mortgage Backed Securities in Commercial Real Estate

A Commercial Mortgage Backed Security (CMBS) loan is a fixed income security backed by a commercial mortgage. These loans are for commercial property such as malls, apartments, office buildings and factories.