Syndication continues to grow in popularity among lenders. Here,
the authors explain the significant legal issues surrounding such
transactions.
According to a recent study, lenders closed $244.2 billion of
commercial/multifamily mortgage loans in 2012. The multifamily
property category accounted for $103.2 billion of that total,
leading all real estate loan originations in dollar
volume.1 Due to the rapid growth in volume and the
escalating size and complexity of mortgage loans and the projects
securing such loans, lenders have been forced to further develop
methods to adequately diversify their risk. While most mortgage
loans are sold into the CMBS securitization market, mortgage loans
held for syndication still represent a significant share of the
loans made by many real estate lenders. The syndication market
provides mortgage originators with an opportunity to create a
customized lending product which extends beyond the standard
requirements of the rating
