Loan Sales Overview
With institutional investors looking increasingly to loan sales as an essential tool in commercial mortgage portfolio
management, HFF executes the sale of whole loans through structured and non-structured sale transactions.
The rationale for loan sales is quite broad and includes:
- the significant trading profit available to seasoned loans given current interest rate and liquidity
characteristics of the market
- mitigation of mortgage portfolio concentration by asset class, geography, sponsorship, term structure,
or credit exposure
- proactive watch list management
- high NPV alternative to foreclosure of defaulted loans
HFF is also one of the only firms in the country possessing the expertise and track record to structure and
execute creative private alternatives to public securitizations, including A and B note participation sales and
non-rated A/B pooled transactions. The rationale for private structured transactions is also broad and includes:
- leveraging of portfolio yields
- cost effective alternative to CMBS
- retention of borrower relationships
- retention of servicing and flexibility in the management of the seller’s loans
- ease of execution
HFF has represented leading institutional lending sources in the sale of:
- performing loans
- credit impaired performing loans
- sub-performing loans
- non-performing loans
- "kick-out" loans