This article was published by Matthew T. Clark and Stewart McQueen.
The 2010 CREFC Annual Convention has begun in earnest. Day 1 began for many attendees with a meeting of the Securities and Loan Investors Forum. This meeting included a lengthy discussion of the Fair Value Purchase Option and a perceived conflict of interest existing when the special servicer holds the securitization’s B Piece. A short break was followed by a lunchtime address from Congressman Scott Garrett (R – NJ), who was vocal in his critique of the current drafts of Financial Reform Legislation that is presently the subject of Congressional reconciliation. We just left the Servicers Forum, which was led by Forum Chair Daniel Bober from Wells Fargo. The Forum is currently working to identify the lessons learned from the past 36 months and to suggest industry-wide changes as we re-imagine CMBS 2.0. The panel discussed common document deficiencies, issues relating to decision making authority under pooling and servicing agreements and investor frustration. Next on the agenda is the Opening General Session on CRE Fundamentals, including an overview of the current state of the CRE market and a look toward the second half of 2010.
Depicted in the photo are Dechert attorneys/ bloggers Matthew T. Clark (left) and Stewart McQueen (right) with Larry Kligman from Ventras Capital Advisors LLC