Source: Commercial Mortgage Alert

The FDIC is marketing a $215.5 million portfolio of mixed quality debt on commercial and residential properties in 20 states. The FDIC is seeking bids for an outright sale, but also is willing to sell a stake in the portfolio via its structured-sales program. Investors can begin conducting due diligence on Aug. 23. Bids are due Oct. 1. Mission Capital is running the auction.

FDIC Floats Pool of Seized Mortgages

The FDIC is marketing a $215.5 million portfolio of mixed- quality debt on commercial and residential properties in 20 states.
The 446 assets, which the agency assumed from 20 failed banks, range from performing loans to foreclosed properties. Commercial buildings account for $166.9 million, or 78%, of the underlying collateral. Another $22.4 million, or 10%, is land suitable for residential development. Acquisition, devel- opment and construction loans and land loans make up the rest of the package.
The FDIC is seeking bids for an outright sale, but also is willing to sell a stake in the portfolio via its “structured-sales” program. Investors can begin conducting due diligence on Aug.
23. Bids are due Oct. 1. Mission Capital is running the auction.
In a structured sale, the winning bidder would work out the
assets and split the proceeds with the FDIC, which may be will-
ing to provide low-cost financing for the purchase. In the 34
structured sales completed since the program began in May
2008, the stakes sold by the FDIC ranged from 20% to 50%.
The average balance on the mix of fixed- and floating-rate
loans in the offered portfolio is just under $500,000. Some 192
mortgages totaling $70.9 million, or 33% of the overall balance,
are current on payments. Another 165 mortgages totaling $92
million (43%) have already matured. The rest are delinquent
by at least a month, including 72 loans totaling $48.5 million
(23%) that are more than 120 days past due.
Some 92 mortgages with balances adding up to $57.7 mil-
lion (27%) mature in the next year, and 63 loans totaling $18.9
million (8.8%) come due in the year after that. The remaining
$46.9 million of notes have maturities ranging up to 25 years
from now.
The collateral properties are concentrated in Pennsylvania

(27% of the overall loan balance), Florida (12.7%) and Virginia (12.3%). Loans that the FDIC inherited from Nova Bank of Ber- wyn, Pa., represent the largest share (33%), followed by mort- gages seized from Bank of the Commonwealth in Norfolk, Va. (13.1%). 

COMMERCIAL MORTGAGE ALERT: Aug. 16, 2013, 5 Marine View Plaza, Suite 400, Hoboken NJ 07030. 201-659-1700

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Source: American Banker

Mission Capital’s David Tobin comments on the current trend of fixed rates.

Fixed-Rate Focus Could Spell

Trouble For Smaller Banks

By Andy Peters

April 3rd, 2013

Community bankers know they must prepare for an eventual rise in interest rates. One way to get ready involves making variable-rate loans, but that task is proving daunting for many banks.
Just ask Paul Erwin, chief financial officer at Nuvo Bank & Trust in Springfield, Mass., who says it is tempting to stick with fixed-rate loans because they produce immediate profits. “You can make profits today, even though the yield is low,” he says.
Banks can get in trouble if they are too reliant on fixed rate products, especially on longer-term loans, says Chris Marinac, an analyst at FIG Partners. Those banks will
face significant pressure when the Federal Reserve Board
ratchets up interest rates.
“You don’t want to have a bank making a disproportionate amount of eight- to 10-year loans that are fixed at 3.75%,” Marinac says. “When rates go up, they’re going to hop up a lot, by 150 or 200 basis points. You could really be mismatched.
Most large banks are well-positioned for Fed tightening, according to data from SNL Financial. At banks with at least $100 billion of assets, the median gap between short-term assets and short-term liabilities, as a percentage of assets, was 22% at Dec. 31.
It is a different story at small banks. The median gap at banks with less than $2 billion in assets was 5.6% at the end of last year.
Banks with a high percentage of short-term loans can react quickly to changing rates. Variable rates add even more flexibility.
Many small banks are struggling with the issue. “It’s a two-edged sword,” Erwin says. “If you fund short and book long, you get [a better short-term return]. But you would get killed if rates go higher.”
Regulators have long harbored concerns about interest rate risk. The Federal Deposit Insurance Corp., as part of a series of technical assistance videos, plans to include a program that focuses on managing interest rate risk.
“If rates went up today, you could have serious consequences,” Daniel Frye, the FDIC’s Boston area director, said during a Wednesday meeting of the agency’s advisory committee on community banking. “Not to the extent it would cause banks to fail, but
it would put them in a position where it’s difficult to
absorb credit costs.”
Many community banks could end up in a precarious position when rates rise, Marinac says. In recent annual reports, about 80 banks disclosed data on the mix of loans in their portfolios.
Of those, five banks reported that fixed-rate loans made up at least 85% of total loans, Marinac says. At Dec. 31, fixed-rate loans made up about 91% of the total loans at Bank of Marin Bancorp (BMRC) in Novato, Calif.
To be sure, banks can migrate their risk by relyng on shorter durations. They can also use interest rate swaps as a hedge.
“These hedges allow us to offer long-term fixed-rate loans to customers without assuming the interest rate risk of a long-term asset by swapping our fixed-rate interest stream for a floating-rate interest stream,” the
$1.4 billion-asset Bank of Marin said in it’s annual report.

Bank of Marin spokeswoman Sandy Pfaff declined to
comment further.
Swaps have limited use as a hedge. For instance, the $13 billion-asset IberiaBank (IBKC) uses interest swaps to cover less than half its fixed-rate loans, Marinac says. The Lafayette, La., company has roughly $3.6 billion in loans that it doesn’t get hedge against. “They know you can’t hedge everything because it’s too expensive,” Marinac says.
Smaller banks should remain cautious about hedging because of it’s complexity. “You need to go into it with a well-though-out plan,” Frye said. “You really need to get it right before you enter a hedging strategy.”
Another problem is that many borrowers demand fixed rates to “lock in low-rate financing,” says David Tobin, a principal at Mission Capital Advisors.
It is very hard for banks to turn away business when credit-worthy borrowers are hard to come by. “If I’m
a bank with a lot of fixed-rate loans, the good news is that I’m making a tremendous amount of money today,” Tobin says.
Plus, some fixed rate loans may be safe to hold when rates rise. “If you have a legacy fixed-rate book that had some credit issues, rising rates aren’t going to affect [the portfolio] because those borrowers couldn’t refinance anyway,” Tobin Says.

To view the original article:

http://www.americanbanker.com/issues/178_64/fixed-rate-focus-could-spell-trouble-for-smaller-banks-1058024-1.html

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Source: The Wall Street Journal - Market Wa

Mission Capital Advisors, LLC, one of the leading capital markets advisory firms in the country, announced today that it completed $3.79 billion of loan sales in 47 separate transactions in 2012. Its Debt & Equity Finance team has completed $730.5 million in transactions since its inception in 2011 in 18 separate transactions.

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Source: Commercial Observer

David Tobin, one of the Principals of Mission Capital Advisors, was named one of the 50 Most Important People in Commercial Real Estate by the Commercial Observer.

 (/)

LEASES  (/LEASES/) FINANCE  (/FINANCE/) SALES  (/SALES/)

 DESI GN +(C /O re N a SA l T g BR r OU a UC p T h I(O //)ANBO U(/TD/)E (S /I r G e N a –lg CO ra N p ST h R /U m C y T /IO p N ro /)ﬁle)

The 50 Most Im MORE p  (o /MOR r E/t)

Estate Finance

BY CARL GAINES (/AUTHOR/CARL-GAINES/) MARCH 5, 2013, 7:30 A.M.

ant People in Commercial Real

Slide

28. David Tobin, Principal, Mission Capital Advisors

Previous 28/52

Founded by David Tobin in 2002 as just a five-person firm focused on note sales, wi some debt and equity capital-raising activities, Mission Capital Advisors is brimmin with both business and employees—so much so that Mr. Tobin said they’ll be lookin for larger office space when their current lease is up.
“Fast-forward to 2008, 2009—business has been steadily increasing up until then, and then it really took off,” Mr. Tobin said. “Even though our note sale business wa growing nicely during the upturn, it’s a fundamentally counter-cyclical business. So when banks started going sideways, we really kicked into high gear.”
Major contracts with the FDIC and the Federal Reserve Bank of New York followed.
2012, Mission traded roughly $3.8 billion of commercial and residential real estate loans, which represented a 23.5 percent increase over the year previous.
Then, over the course of both 2011 and 2012, Mission closed $730.5 million of debt and equity transactions. This volume includes land loans for condo developments i New York and Florida.
Asked how the debt and equity side compares with the note sales side, and how the two shift as a percentage of Mission’s business, Mr. Tobin explained by taking a loo back over the past several years.
“It was basically zero in 2009,” he said of the volume of debt and equity business. Now, he pointed out, the firm has staffed up that group, a reflection of how that portion of the business has grown. “From zero, I would say that if you take our 2011 and 2012 totals, which probably measure somewhere on the order of $8 billion of debt sold, those guys have done close to $1 billion of debt and equity over the same period.”
He estimated that this made it 10 percent of their business and added that “I would expect [it] within two years to be 50 percent of our business.”

The Mortgage Observer asked Mr. Tobin if having a multifunctional business—in which clients buying sub-performing and distressed debt deals on the private equit side return to invest JV equity in real estate deals Mission arranges—was always a goal.

“It was always the intent, but the debt trading side was the thing that took off immediately when we started the firm in 2002,” he said. “So in 2002 we were still cleaning up the ’98 mess and the dot-com implosion mess, and that accelerated to
’06, and it was busy, and we did new origination trading where banks are buying portfolios of newly originated loans and trading them and syndicating them. When the wheels came off everything, we were just perfectly positioned to help clean up the mess.”
Next up for the firm, he said, is investment sales. “We’re licensed in a number of states, and we’re rolling out that whole platform, because it dovetails well with the note sales platform,” Mr. Tobin said. “Ideally, we will be a very diversified, multiple office shop at the end of 2014.”

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People in this story

r e Ralph Herzka

I – President, Meridian Capital Group

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KEYWORDS: Top 50 (/tag/top-501}, slideshow (ltag/slideshow!}

Priya Haji : SaveUp

The serial social entrepreneur, 42, got into business as a teenager in Texas, helping her father build a free health clinic. In 2004 the Stanford grad founded World of Good, which sold products made by women in more than 70 countries; eBay bought it in
2010. Her current company, SaveUp (founded in 2011), is a gamelike site that links to users’ financial accounts and awards points for saving money and paying down debt. Points give users a shot to win $2 million, cars, vacations and gift cards. SaveUp has raised nearly $7 million and has helped members bank $149 million and pay off $122 million in debt.

David Tobin: Mission Capital

Advisors

The Syracuse English major won his first job in Dime Bancorp’s distressed real estate group in 1992 after talking with the hiring manager about writers Charles Bukowski and Jerzy Kosinski, a shared interest. Tobin, 42, started his own distressed real estate loan
brokerage, Mission Capital, in 2002 in a SoHo loft. (Neighbors: indie record labels and Keith Richards’ business manager.) Today Mission uses its digital platform to enable 35,000 active clients to bid and conduct due diligence on $40 billion in loans a
year. Now based in Tribeca, Mission has logged $60 billionplus in financing and sales overall.

Amy Jo Martin: Digital Royalty

Martin, 33, got her start in sports p.r. with the NBA’s Phoenix Suns, introducing players and sponsors to social media. The Arizona State alum launched Digital Royalty in 2009 to develop social media strategies for teams, leagues, athletes and brands. First client: Shaquille O’Neal, whom Martin helped pull in 6.4 million Twitter followers. Digital Royalty generates seven figures in annual sales through retainer fees, its cut of social media endorsements and Digital Royalty University, which provides social media training. Current clients: DoubleTree, Fox Sports, Hard Rock
Hotel & Casino and Zappos’ Tony
Hsieh.

Recommended by Forbes

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Forbes Up An
Comers: Matt Charley Moor , Shawn Amos

(Follow me on Twitter at

@StevenBertoni)

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 Report Corrections

 Reprints & Permissions

ON THE

TOP COMMERCIAL MORTGAGE BROKERS UNDER 35

Back in September, we sent word out that we were looking for the best and brightestamongcommercial mortgagebrokersworkingin the New York tristate area.The one caveat? They had to be 35 or under or fairly newly 36,we decided as the nominations rolled in.With some real legends firmly established in the field, we were curious to find out about the younger generation nipping at their heels. What we got was a real variety of commercial mortgage professionals, racking up an impressive volume offinancings-the youngest of whom, now 24, closed over $50 million in transactions in his first six months on the job.

One of them also provided a nod to the past, as his family harks back

to the early days of the business.

With our 20 on the Rise, The Mortgage Observer found that the
future is bright– and in good hands.

JORDAN RAY

ManagingDirector of theDebt andEquity AdvisoryGroup at MissionCapti alAdvisors llEI

Jordan Ray is directly involved in each transaction of Mission Capital Advisor's finance group, which in 2012 will close over

5700 million of JV equity and debt. Prior

to joining Mission Capital in 2009, Mr. Ray served as managing director at the Ackman Ziff Real Estate Group.A total capitalization of just under $600 million for the Trump Bcachwalk Project in Waikiki has been his largest deal.

"To be successful in this business,you have to like what you do," he said. Mr. Ray takes pride in being part of a firm that focuses heavily on new technologies.A team of mony

"children of the technology revolution" in their 30s or 40s helped to build "a very different kind of form,"he said. Born in Montreal,Canada,he grew up in Southern Florida.He holds a master'sdegree in real estate from New York University and a B.A. in fonance from American University.

For the full magazine, please visit:

http://commercialobserver.com/mortgage-observer/the-mortgage-observer-november-2012/

CAPITAL MARKETS LIQUIDITY

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Mission Capitol Advisor's Debt and Equity Advisory team has raised more than $8 billion of capitol for real estate owners and developers nationwide during their careers. Mission Capitol is one of the leading capitol markets advisory firms in the country,having completed more than $55 billion of financing,loon sole and Fannie Moe / Freddie Moe transactions since 2002. Contact Jordan Ray,Jason Cohen, Ari Hirt or David Tobin at 212–925-6692 to discuss your debt and equity financing needs.

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Source: Forbes

Mission Capital’s David Tobin is featured in Forbe Magazine’s Up-and-Comers “Saver Broker Marketer” section.

Forbes

November 19, 2012

UP-AND-COMERS

ISAVER BROKER MARKETER

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Source: CRENews

Mission Capital Advisors is offering a $250.6 million portfolio of subperforming loans on behalf of a bank client.

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Source: SmallBalance.com

Activity has remained quite robust for three years running, and solid demand has continued pushing recovery levels upward, and loss levels down, says David Tobin, principal with note-sale and property finance specialist Mission Capital. In fact as far as demand for small-balance NPLs is concerned, well-heeled distressed-debt specialists have to a great degree been squeezing out many of the local entrepreneurial types bidding at auction for one to three closely located assets, Tobin adds.

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NPL Dispositions Slowdown? Not Really

August 16, 2012

Dispositions of sub and nonperforming commercial mortgages during 2012's first half were actually down notably from the yearearlier period: roughly $8.4 billion compared to $15.2 billion, according to advisor DebtX. But you'd never know it given the frantic pace ongoing at notesale specialists such as Auction.com, Mission Capital Advisors, Carlton Group, First Financial Network or DebtX for that matter.
As portfolio and securitized loans continue going into maturity and debtservice defaults at a pretty heady pace, debtholder representatives keep engaging disposition platforms and investors continue snapping it all up amid seemingly stronger demand than was seen during
2011's first half.
Indeed, activity has remained quite robust for three years running, and solid demand has continued pushing recovery levels upward, and loss levels down, says David Tobin, principal with notesale and property finance specialist Mission Capital. In fact as far as demand for smallbalance NPLs is concerned, wellheeled distresseddebt specialists have to a great degree been squeezing out many of the local entrepreneurial types bidding at auction for one to three closely located assets, Tobin adds.
As for the relative decline in aggregate volume for this year's first half, the corresponding 2011 period saw big banks (some of them offshore), CMBS special servicers and the FDIC bring several megaportfolios to market. With many moneycenter banks having taken

Favorable Expectations For 2014 Voiced By Experts in First Survey

After generating robust small
balance loan volume last year at
historically low interest rates, the question arises as to how the small commercial lending landscape is shaping up for
2014….

SmallBalance Borrowers Go Long With Life Cos.

Property owners aiming to lock in today’s attractive rates over long
term holds are suddenly finding
plenty of interest among more aggressive life company lenders…
major steps to clean up portfolios, and with FDIC taking over far fewer failed institutions, it's now the regional and community banks that
have joined conduitloan special servicers to dominate the NPL disposition activity, Tobin explains.
And again, perhaps the most significant change in the smallbalance NPL arena is that the wellcapitalized specialists have shifted targets toward the $3 millionandunder category and in fact the sixfigure sector in many cases as well.

More

Read
As banks are quite active disposing of these smaller loans, they're a logical target for even the likes of powerhouses Colony Capital and Oaktree Capital. "With FDIC having taken its foot off the pedal, what we're seeing a lot of today isn't the $5 million and $10 million loans, it's banks offering loans with balances ranging from $250,000 to $3 million," Tobin notes. "And in fact a lot of them are less than $1 million."
This shift is also playing out in the pretty consistent rise in pricing these assets have commanded over the past year and in average transaction sizes, Tobin continues. Prior to the last 18 months or so, Mission Capital and peers would typically see far more investors winning bids for assets within offered portfolios.
Through late2010 as many as 30 buyers might end up with pieces of a $100 million portfolio. The more typical model today is that even far larger portfolios end up split among just a couplethree or so fundmanager types.
The banks and special servicers shedding these assets are strategically structuring subportfolios (by property type, region, size, distress level, etc.) to attract these investor groups many of which have set up sophisticated servicing and asset management operations. Accordingly another noteworthy development is that nearly all the offered assets end up selling probably 95 percent today compared to
60ish three years back, Tobin estimates.
Logically today's most active buyers see great strategic value in these assets and hence are willing to outbid the lesserheeled competition. Pricing averaged 40 to 50 percent of unpaid balance back in the darkest days, but loans are now more typically trading in the high50s and
60s for nonperformers, and up into the 70s occasionally for subperformers (and possibly the 80s in preferred markets such as the big
Texas metros).
"It's been a pretty dramatic movement in pricing," understates Tobin, whose firm has helped clients dispose of about $1.9 billion worth of commercial notes and $975 million in residential debt so far this year. According to research by Morningstar Inc., the average loss severity for the 635 conduit loans liquidated during the first half came to 45.5 percent which factors to mid50s UPB.
Another factor is that many enlightened banks that have been strategically disposing of some assets pretty much every fiscal quarter have returned to health and are more willing to meet market pricing today. Hence the bidask gap between these institutions and NPL investors has pretty much "evaporated" of late, as Tobin puts it.
Indeed DebtX reports that the general bidask gap for commercial real estate loans offered for sale has been sliced in half over the past six months.
One more notable change is that financing has returned to the NPL acquisitions arena at least for the creditworthy players demonstrating solid servicing and asset management capabilities. Namebrand lenders such as GE Capital might offer senior leverage at up to 60 or 65 percent, and mezzanine lenders in some cases losing bidders for the same portfolio might bring total leverage up to as much as 80 percent.
And of course at today's rates the blended debt cost is pretty attractive given such an investment's risk profile. "We're talking about senior debt at 4 to 5 or maybe 6 percent, and mezz at 10 or 11 today," Tobin specifies. "So your blend comes to 7 or 8."
And it appears the capital flow will continue for quite some time. "Whenever it all stops, the business you'll want to be in is financing," concludes Tobin who has been busy enhancing Mission Capital's equity and debt placement capabilities at its offices in New York, Palm Beach Gardens, Austin and Newport Beach.

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Source: National Mortgage News

David Tobin, principal at Mission Capital Advisors based in New York, said the FDIC’s disciplined approach to assisted takeovers, loss shares and asset sales has helped stimulate market demand for sales of private sector distressed and performing debt.

Bank Failures Slow Down, But Trouble Still Looms

By Evan Nemeroff

August 15, 2012

The pace of bank failures through July slowed down compared to last year, but there are still expectations that it could be rough second half of 2012, according to the latest figures from Trepp.
In July, eight banks failed, which is one more closure than the previous month but down from 13 a year ago, the New Yorkbased analytic firm said.
All of the bank failures last month occurred in the Southeast (5) and the Midwest (3). Georgia had four closures in July, helping it increase its overall total for the year to nine, which leads the nation. There was also one termination each in Florida, Illinois, Kansas and Missouri.
The banks that failed last month had been on the Trepp Watchlist for a median of 14 quarters.

Credit: ThinkStock

Two of the banks were on the Watchlist for 16 quarters prior to failing, which marks a new record length.
Trepp said commercial real estate exposure was the main detriment for the banks that failed in July, comprising $142.8 million of the total $202.8 million in nonperforming loans.
Other areas of distress that made up the nonperforming loan total were residential mortgages with $38.9 million, construction and land loans accounted for $84.7 million and commercial mortgages consisted of $58.1 million.
So far this year, 39 banks have shut down. This is down substantially from 61 and 108 that closed during the same time period a year ago and through July 2010, respectively.
Despite the slowing pace, Trepp said there are still 190 banks at high risk of failure, therefore resulting in the expectations that more closures will take place before the end of the year. Among those financial institutions who have the greatest risk, 36 are located in Georgia, followed by Florida with 26, Illinois has 24, 11 are in Minnesota, North Carolina has 10, eight in Tennessee and Missouri with seven.
Even though there was an uptick in bank closures in June and July, the pace through the first seven months of the year has fallen to
5.6 a month. In 2011, the failure pace was 7.7 per month.
At the current pace, Trepp estimates 67 bank failures to happen in 2012, which is slightly higher than 50 to 60 shut downs the FDIC
predicted earlier this year.
“The slower pace of bank closures is attributable to more time being ‘added to the clock’ for ailing banks, as well as some actual progress among these banks in capital raising and performance improvement,” Trepp said in its report. “However, the slower pace of closures will likely mean that failures will continue into 2013 and possibly beyond, depending on the strength of the economy in general and real estate market conditions in particular.”
David Tobin, principal at Mission Capital Advisors based in New York, said the FDIC’s disciplined approach to assisted takeovers, loss shares and asset sales has helped stimulate market demand for sales of private sector distressed and performing debt.
“The lower bank failure rate yearoveryear is proof positive that the measure taken in the U.S. by the Fed, FDIC and banks themselves to dispose of distressed assets and hold others in portfolio, were spot on," Tobin said in an email to this publication. "In fact, U.S. distressed debt methodologies should be emulated by Europe to mitigate the banking crisis there, which, in turn, would stimulate growth and demand worldwide via a healthier banking and lending market.”

© 2016 SourceMedia. All rights reserved.

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Source: CoStar Group

David Tobin, principal of Mission Capital Advisors in New York, discusses how it is not just peak market vintages causing trouble with CMBS delinquency.

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Source: Globe Street

David Tobin, principal of Manhattan-based Mission Capital Advisors, says in a statement that the delinquency rate remains elevated because all vintages of originations are experiencing negative market pressures.

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MissionCapital View more articles

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Fixed-Rate Focus Could Spell

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The Mortgage Observer asked Mr. Tobin if having a multifunctional business—in which clients buying sub-performing and distressed debt deals on the private equit side return to invest JV equity in real estate deals Mission arranges—was always a goal.

Priya Haji : SaveUp

David Tobin: Mission Capital

Amy Jo Martin: Digital Royalty

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Fixed-Rate Focus Could Spell

Trouble For Smaller Banks

To view the original article:

The Mortgage Observer asked Mr. Tobin if having a multifunctional business—in which clients buying sub-performing and distressed debt deals on the private equit side return to invest JV equity in real estate deals Mission arranges—was always a goal.

Priya Haji : SaveUp

David Tobin: Mission Capital

Amy Jo Martin: Digital Royalty

Recommended by Forbes

(Follow me on Twitter at

@StevenBertoni)

See Also: Refreshing…

California

Housewife Raises

Anxiety? Cannabis

Extract, Now Legal

Social Security

Sucks: Born Before

Ditch The Mattress

Store ­ Find Out

Credit Score From

in NY

1969? You Can Get

Why Sleep Experts

Homeowners Who Have Not Missed A Payment in 3 Years

Ithaca Drivers

Surprised By 2016

Rule

Most Embarrassing Pictures Ever Captured

The #1 Sneaky Trick To Melt Fat While Sleeping? (Try This

ON THE

TOP COMMERCIAL MORTGAGE BROKERS UNDER 35

JORDAN RAY

Forbes

Home About Us Products MarketBeat News Online Shop Register

NPL Dispositions Slowdown? Not Really

Favorable Expectations For 2014 Voiced By Experts in First Survey

Small­Balance Borrowers Go Long With Life Cos.

Store Find Out

SmallBalance Borrowers Go Long With Life Cos.