Berger served as Vice Chairman of the Mortgage Bankers Association ’ s Commercial/Multifamily Board of Governors and received the association ’ randomness Distinguished Service Award. He has written numerous articles on commercial very estate finance, servicing and asset management .
MBA NEWSLINK: 2020 was an unusual year and particularly hard for respective sectors in commercial real estate. Do you see that continuing into 2021 ?
Stacey M. Berger STACEY BERGER: 2020 was an extraordinary year for the commercial actual estate finance industry as a resultant role of the economic affect of the COVID-19 pandemic. The cordial reception and retail sectors were importantly impacted by COVID-19-related reductions in change of location and in-store shopping. These challenges resulted in declines in rental income and the ability to service existing debt or refinance suppurate loans. Government fiscal and monetary relief efforts and potent market fluidity have provided better than expected commercial and multifamily lend performance. The anticipate handiness of widespread vaccinations and further economic interventions are expected to positively impact the commercial real estate convalescence.
Midland, as one of the leading commercial mortgage servicers and special servicers was faced with an unprecedented volume of CMBS borrower relief requests and a tenfold increase in special service volume coincident with a rapid conversion to a work-from-home environment. Midland was successful in addressing these challenges, adding special servicing staff, implementing meaning technology advances and adding new servicing and technology clients in this challenging environment .
NEWSLINK: At a macro level, what do you expect to see across the servicing diligence in 2021 ?
BERGER: The commercial loan servicing industry has been challenged by the unprecedented book of borrower-related activities as a result of current economic conditions. commercial loans have gotten significantly more complex and unmanageable to service. many servicers have multiple product types including life company, multifamily agency, CMBS, CRE CLO bridge and mezzanine loans. humble pastime rates have reduced interest income on escrow and reserve deposits, which are a significant reference of servicing revenues. These factors have put frightful demands on existing staff and servicing economics .
NEWSLINK: Are there any emerging trends that are having an impact on the diligence ?
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BERGER: The current economic challenges, responses to borrower requests and increased delinquencies and defaults are impacting servicers ’ resources and economics. Improved information is critical to support asset and portfolio risk management. commercial and multifamily servicers are implementing technology innovations, which provide opportunities to automate manual processes and improve operate efficiencies. commercial loanword service is a scale business. The diligence has consolidated over the concluding decade. The necessitate for engineering investing to improve function efficiency and servicing economics may drive further consolidation .
NEWSLINK: We ’ ve seen technology impact closely every company over the stopping point class, whether it be Zoom calls or new systems. Can you tell us about how technology is impacting the service industry ?
BERGER: Servicing is basically a serve occupation, which is highly dependant on technology, and servicers are investing in technology innovations to side themselves for future growth and profitableness. commercial and multifamily mortgage bankers, portfolio lenders and servicers are focused on amply integrating their engineering platforms from initiation, underwrite, servicing, asset management and default management or special service. Cyber security and business continuity are critical concerns and require continuous investment in infrastructure and monitor, which are supported by PNC Bank for Midland.
NEWSLINK: How about Midland specifically ? Are there any particular initiatives or plans for Midland on the horizon for 2021 that you can plowshare ?
BERGER: Midland is a commercial servicing engineering seller, providing the enterprise ! lend management system to a kind of servicers, mortgage bankers and portfolio lenders. With the support of PNC, we have made a meaning multi-year investment in modernizing the platform, adding automation features, work flow and functionality. We are investing in robotics, API ’ second and enhanced drug user interfaces. In reception to node matter to, we are besides transforming our hosting alternatives to offer a public cloud choice. We have added a number of new servicing engineering clients and expect to see continued growth in our serve and engineering businesses .
Views expressed in this article do not necessarily reflect policy of the Mortgage Bankers Association, nor do they connote an MBA endorsement of a specific company, product or service. MBA Insights welcomes your submissions. Inquiries can be sent to Mike Sorohan, editor, at msorohan@mba.org ; or Michael Tucker, editorial coach, at mtucker@mba.org .
