https://www.phillyvoice.com/greg-englesbe-real-estate-hospitality-retail-real-estate-value-loss-appraisals-0599945/
Alternative story link. Disregarding appraisers analysis in leu of hypotheticals?

https://www.nolo.com/legal-encyclopedia/emergency-bans-on-evictions-and-other-tenant-protections-related-to-coronavirus.html
CDC seeking to set our local municipal policies now, dictating to us when landlords can evict or not. CDC, doing more harm than good, comrade.

https://www.thedenverchannel.com/rebound/coronavirus-investigations/landlords-sue-to-end-eviction-moratorium-in-hopes-it-pushes-congress-to-pass-another-stimulus-bill
Landlords fighting this in court on state by state basis. In other news those friendly stats about low eviction rates are not as reliable as initially thought. Further analysis shows a remarkable volume of renters not on actual written leases, virtually no protections and unable to be factored into stats. The nicer apartment groups claiming low evictions provide a skewed analysis because they’re dealing with well to do renters. Rental eviction courts are stacking up and stacking out in time right now.

https://www.youtube.com/watch?v=Zo8zjqaLyJ4
CDC idiots. We’re not cancelling thanksgiving. Trusting the government to keep you safe is a fools errand.

https://ml-implode.com/staticnews/2020-09-29_CMBSAppraisalsShowAtrociousValueLossInHospitalityRetailCMBSWITHF.html

CMBS Posts Record Delinquency Rate
Fed, Treasury Extend CMBS-Eligible TALF
CMBS TALF May Bring New Issue in November: Sources
Wells Fargo CMBS Servicer Ratings Fall on Management Concern
COVID fallout: Pressure Builds For A CMBS Bailout

CMBS Appraisals Show ‘Atrocious’ Value Loss In Hospitality, Retail CMBS (WITH FRAUDULENT ECHOES OF ’08)

2020-09-29 — bisnow.com

“”The numbers themselves are atrocious,” PineBridge Investments portfolio manager Gunter Seeger told FT. “A [nearly] 30% markdown in appraisals pretty much across the board is horrific.”… The issue may also be more complex than an equation of properties losing value in a bad economy. A Securities and Exchange Commission whistleblower complaint in May alleged that financial institutions like Wells Fargo and Deutsche Bank had been systematically and fraudulently inflating the value of properties in CMBS loan packages — behavior strikingly similar to what precipitated the subprime mortgage crisis that collapsed the housing market in 2008.”

[Place all the risk on taxpayers, and all the reward with private companies. What could go wrong? ] (Mr. Baggins)

https://www.bisnow.com/national/news/capital-markets/cmbs-appraisals-real-estate-values-crumbling-106125

“The commercial mortgage-backed securities market is taking a beating. As more and more CMBS borrowers default on their payments and send properties to special servicing, the appraisals on those properties have averaged about a 27% drop in value from when the loans were originated, according to Wells Fargo data reported by the Financial Times.

A majority of the troubled properties that have been appraised are hotels and retail buildings. “The numbers themselves are atrocious,” PineBridge Investments portfolio manager Gunter Seeger told FT. “A [nearly] 30% markdown in appraisals pretty much across the board is horrific.”

The set of CMBS loans used for Wells Fargo’s analysis comes from 116 properties that have been sent to special servicing since April 1, FT reports. Over half of the appraisals have occurred in the past month, and 101 of the properties are either in hospitality or retail.

By May, $32B worth of CMBS debt, almost all of it in those two sectors, had already been sent to special servicing.”

Read more at: https://www.bisnow.com/national/news/capital-markets/cmbs-appraisals-real-estate-values-crumbling-

Place all the risk on taxpayers, and all the reward with private companies. What could go wrong? The GSE’s are only public per se. They are private financial institutions which benefit first receivers of money most, with a side benefit to the individual whom is the second receiver of the fiat money if a loan is issued. The entire public body takes on all the risk through a distributed burden, aka; taxpayer backing (with an increasing cumulative effect.) Getting a loan is not a constitutional right, it is an earned privilege. Fiduciary responsibility. In the absence of gse’s we’d see more sensible and more restrictive lending policies, risk assignment based on individual merit and accountability, rather than calculations of group pooled risk and loss. With GSE’s, the taxpayer becomes the insurer.

The pontifications on industry correction for better mortgage practices with less risk are mostly lip service. What would be wrong with stopping all cash out offerings for primary mortgages and scooting all cash out requests to helocs or lein based signatory loans with naturally shorter term lengths? Oh yes, we would not want anyone getting in the way of big lending and their direct long term mainline access to monetize peoples entire equity stack. Imagine a system where nobody would have to reset the 15 or 30 year clock except for a better rate. This would have a lasting effect on a wide range of economic behaviors especially the consumers willingness to take on new debt, provide disincentive to use the home like an atm. Leveraging property for cash is an original form of predatory lending. You want a loan? I want your most valuable asset. Sign here.

Don’t kid yourself, lenders love cash out refinances. It stacks on significant interest amortization over time as the clock restarts and puts the lender in control of your property interests. Consumers are inundated with the industry buzzwords and mantras; we’ll make it simple, easy access, increased convenience, automation. In realty though, those advancements which remove tedious and often costly bureaucracy are of primary benefit to the lender and not the consumer. It is the bureaucracy and red tape which keeps land and home ownership in place, which allows fee simple ownership, holding swindlers at bay.

Refried refi’s. Tricking consumers into only reviewing monthly costs without considering cash equivalency over the entire term of amortized interest. Not clearly describing and not clearly disclosing the actual cash equivalent multiplier in borrower disclosure. If only they had a clearer understanding that the monthly savings results in significant out of pocket costs increase over term. If they understood that by leveraging that debt into a 30 year new mortgage, they’ve actually increased the total cost of that debt by a multiplier which is likely 2x or more. That $100k house actually costs you $200k over term and if you roll your debt in there, oh billy! Lenders have no real motivation to reform the system. More debt equals more profit. More monetary extension means more taxes as the taxation is the recapture mechanism to manage an infinite stream of fiat currency. It keeps the show going. Consumers lose twice for every government loan issued with federal reserve currency.

Meanwhile just keep everyone arguing about waivers, avm’s, automation, middle men, racism, spilled coffee, whatever they go for. Under no circumstances will we focus on the real issue, which is that government should get out of the business of providing lending and insurance. Or one could just audit and abolish the fed to stop the first receivers of fiat money from having this unethically allocated monetary leverage. The root cause of the problem persists, the federal reserve. Want to talk elections? It’s been over a 100 years and the American people are still waiting for our chance to vote if we want the Federal Reserve in the first place.