Commercial mortgage crisis prevention: New insights for lenders and regulators.
Commercial mortgage delinquency and default rates rose during the 2007-2009 financial crisis, catching traditional models off guard. This study looks at why mortgages end early and how losses are determined, as well as how commercial mortgages and securities are priced. Special servicers play a key role. The findings can help borrowers, lenders, investors, regulators, and policymakers improve credit risk models and lending standards.