Aug 27, 2020
To understand the CRE drivers of default, where better to look
than banks that failed in the Great Recession. We’ll run through
ten recommendations from a CRE expert who went behind the scenes in
banks slated for failure by the FDIC to (re)value their CRE
Topics discussed in this episode:
2:45 The difference between due diligence and
3:58 Understand the leases
4:28 Why a lease abstractor?
6:08 When not to use the broker package
8:44 What about rollover spikes in cash expenditures?
11:08 Drivers of value: occupancy, rent, rollover costs
11:34 What properties do the guarantors still own?
About Gina Marotta:
Ms. Marotta is a subject matter expert in mortgage finance,
property ownership, and due diligence involving performing and
non-performing commercial real estate loans and properties. In
addition to structured finance transactions, she works with credit
unions on the underwriting analysis of new loan participations and
the completion of annual loan reviews, global cash flow analysis,
and credit risk rating of commercial real estate loans.
Since 1995 she has held a variety of roles in pooled mortgage
transactions that include the re-underwriting of some $70 billion
in legacy CMBS loans under the US Treasury’s PPIP program; managing
the securitization process of commercial real estate loans; and
loan re-underwriting and due diligence on behalf of high-yield
investors purchasing commercial real estate loans and assets.
Between 2009 and 2012, Ms. Marotta worked with a major private
equity firm in building a distressed debt platform to invest in
small balance mortgage loans of failed community banks throughout
Ms. Marotta has held various senior consultant roles in Latin
America since 2004 that include: social interest housing
securitization transactions, enterprise risk assessments of social
interest housing mortgage companies, distressed small-balance
mortgage loans, and operational assessments of regional mortgage
and consumer finance companies.
In addition to her corporate and consultancy career in real
estate investment transactions, she has been an investor in various
commercial and multifamily properties in California and
Ms. Marotta began her career in 1987 working in the urban
mixed-use development group of the Santa Fe and South Pacific
Railroad (Santa Fe Pacific Realty). She holds an MBA from the
University of San Diego and an MA in international human rights
from Columbia University. She is the founder of the non-profit
Human Strategies for Human Rights, which she ran from 2001 through
2004, focusing on NGO capacity building, and held consultancy
positions at the United Nations in 2000 and 2001. She maintains
consultancy offices in Los Angeles and Detroit.
Phone: (213) 625-0908
Mobile: (818) 264-5988
Does and Dont's in CRE Loan Underwriting
Gina Marotta Loan Review Worksheet