Underwriting
Terrace Capital's (TC) core competencies in
commercial mortgage underwriting and real estate analysis
are applied to conventional lending situations and
structured capital markets transactions, whether dealing
with new or seasoned loans and portfolios. From TC's
perspective, loan due diligence is that of analysis and data
gathering performed in conjunction with the proposed,
origination of new loans or the sale/ acquisition of
existing loans and portfolios. Due diligence is both
forensic and current in nature and principally
concerned with ascertaining the here and now. Our analysis
services are provided for performing, sub-performing or
non-performing loans.
Underwriting & CMBS Investment Analysis
TC views due diligence,
(primary market) new loan underwriting and CMBS/B-piece
analysis as analytical activities that go hand-in-hand. The
fundamental difference between the two disciplines is that
due diligence is primarily concerned with looking back
through the history of property operations up to today,
while underwriting is concerned with developing informed
assumptions and identifying risk factors relating to the
future viability of the property from today through the loan
term. The underwriting professional combines historic
information along with current market conditions and trends
to assess future risk of the performance of a given
property.
Collateral Analysis / Site Inspections
Terrace Capital’s
Commercial Property Analysis (“CPA”) report has been used
by lenders and asset managers around the country. The CPA
process combines a secondary-market-type property
inspection, which records and evaluates the subject's
location, neighborhood characteristics, notable
environmental issues, fundamental property facts, condition
and deferred maintenance with a market study that gathers
current market data, describes market activity and examines
competitive properties. CPA’s typically address trends to
alert the reader to possible property performance declines
and the potential need for special servicing or loss
mitigation, before they're necessary.
Commercial Property Inspections
(Performing / Non-Performing)
– Our Commercial Property Inspection of loan collateral is a
current qualitative, mortgage risk assessment. This
analysis will focus on the characteristics of the property
that influence its current level of competitiveness in the
marketplace.
Loan Servicing Support
TC’s fundamental
asset-level understanding of commercial real estate lending
and property operating dynamics enables it to offer the very
best in mortgage servicing support. TC personnel can audit
loan servicing records to ascertain servicing system
conformance with underlying legal documentation, and
servicer/ borrower compliance with loan terms and
conditions. TC can develop a plan for corrective action,
where non-compliance is wide spread. |
