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
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