Ann Hambly
In my role as a borrower advocate, I get the opportunity to work directly with commercial real estate owners who have CMBS debt. These are the 4 most common misconceptions those borrowers have today (in 2018):
I don't need to worry about cash management springing on my loan if my property is performing and my DSCR is well above the threshold in the loan agreement
The general premise of springing cash management is to allow the lender to capture all cash flow in the event of declining property performance. I think everyone agrees with that general statement and understands when they sign up for springing cash management that is the intent. As they say though; “the devil is in the details!”
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