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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.



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