Early Es­ti­mates Put CMBS Ex­po­sure to Irma in Tens of Bil­lions

National Mortgage News - - Servicing - BY AL­LI­SON BISBEY

COM­MER­CIAL MORT­GAGE SER­VICERS are tak­ing steps to assess dam­age, pay­ment de­lays and in­sur­ance dis­burse­ments brought on by Hur­ri­cane Irma, which made land­fall in the Flori- da Keys Sept. 10 as a Cat­e­gory 4 storm and weak­ened as it and moved up the west coast, as well as for Hur­ri­cane Har­vey, which sub­merged large parts of Houston two weeks ear­lier.

The process of con­tact­ing bor­row­ers in the af­fected ar­eas is ex­pected to take weeks. In the mean­time, the only way to de­ter­mine po­ten­tial CMBS ex­po­sure is by scour- ing data­bases for se­cu­ri­tized loans in coun­ties that the Fed­eral Emer­gency Man­age­ment Agency has de­clared disas­ter ar­eas — some­thing that has yet to take place in Florida.

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