Special-Servicer Work Heats Up, Revealing CMBS Tensions

Real Estate attorney Mark Weibel was quoted throughout a recent Law360 article about tensions between parties in commercial mortgage-backed securities (CMBS) deals. The article discussed factors the controlling certificate holder should consider when hiring special servicers, as well as the possible responses from investors and ratings agencies. Mr. Weibel weighed in on potential conflicts of interest between parties in CMBS structures that can arise in a distressed market.

"The controlling certificate holder works for themselves — they're allowed to, and everyone knows it," he said. "It creates tension for the good special servicers, especially the conservative, institutional ones. If they have a good reputation, they still do it right."

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