Commercial Mortgage-Backed Securities

Certain fees for CMBS borrowers have been eliminated

Because we’re able to hold long-term real estate loans on our balance sheet, we can provide you with greater flexibility and better execution for traditional CMBS products. You also benefit from working with a stable lender that has the resources to stay with you through credit market disruptions.

  • Large commercial real estate developers and investors
  • Public and private REITs
  • Public and private real estate investment companies
  • Middle-market commercial real estate developers and investors
  • All major property types
  • $1 million to $1 billion
  • Non-recourse (subject to standard carveouts)
  • Up to 75% LTV
  • 1- to 10-year terms
  • 25- to 30-year amortization and interest only
  • Fixed or floating rates
  • First mortgage and mezzanine loans

We can customize a financing solution to suit your business. Our teams will work with you to ensure you receive optimal financing for your unique needs.

Defeasance

Wells Fargo can help you with the complex process of defeasing a loan. Our defeasance clients include individual borrowers, institutional investors, financial institutions, investment banks, and third-party investment groups.

At Wells Fargo, we reviewed our CMBS loan documents in order to make enhancements that would improve our CMBS borrowers' experience. We examined ways to make the entire process easier and more transparent for customers, in regards to fees, deadlines, and expectations. The following enhancements were identified and incorporated into our CMBS loan documents.

Reserves

On Wells Fargo CMBS loans, for reserve disbursements that are $500,000 or less per request, our loan documents provide that our borrowers are only required to submit a "Disbursement Request and Certification" and a "Reserve Disbursement Schedule." The Disbursement Request and Certification form are an exhibit to the loan documentation. This means CMBS borrowers do not need to send in a copy of invoices, checks, etc. as that information will now be listed in the Reserve Disbursement Schedule. For reserve disbursements that aggregate above $500,000 per request, the CMBS borrower on a loan will need to submit the Disbursement Request and Certification, Reserve Disbursement Schedule, and additional information for any individual invoice that is over $100,000.

Fees

Other CMBS lenders may be charging certain recurring fees for the life of the loan. On Wells Fargo CMBS loans, however, borrowers are not charged these fees. Specifically, Wells Fargo’s loan documents prohibit the imposition of any fees for the following borrower requests and/or processes:

  • Lease approvals
  • Subordination, non-disturbance and attornment agreements
  • Property management agreements
  • Hotel franchise agreements
  • Reserve disbursements
  • Release of any letter of credit
  • Escrow analysis
  • Copies of loan histories
  • "Pay by phone" payments
  • Tax service
  • Continuation of UCC financing statements

Wells Fargo’s goal is to enhance the CMBS experience for our borrowers. Please contact us if you have any questions or comments.