About
The Loan Valuation Group offers whole loan valuations, as well as CMBS position valuations, and a variety of consultative services such as yield-rate projections for various property types at different loan-to-value thresholds. Our whole loan valuations include a market value estimate of the underlying collateral; a cash flow model based on the collateral’s projected performance and specific payment structure indicated by the loan documentation; and a market-derived discount rate applied to the projected cash flow stream to the note holder. The selected discount rate is supported by a detailed debt market analysis that considers current trends in lending standards; CMBS issuances and spreads; new loan issuances and spreads and loan acquisition statistics. The analysis also considers investor loan yield rate expectations based on interviews with brokers, buyers and sellers of whole loans collateralized by real estate. Our loan valuation specialists are available to provide additional support with auditor reviews and litigation support, as needed.
Our reports have been used for financial reporting, investment portfolio monitoring probate matters, and alternative dispute resolution. The Loan Valuation Group utilizes the Single Point of Contact (SPOC) system for multi-property, multi-market portfolios. This system gives clients a central source for assignment coordination, product consistency and report delivery.
Expertise
We have experience valuing loans with the following characteristics:
- Cross-collateralization
- Equity kickers
- Fixed rate
- Floating rate
- IRR look backs
- Mezzanine position
- Non-performing
- Performing
- Senior position
- Sub-performing
- Waterfall distributions
