Nov 12, 2020
Forbearance is a true test for the
puzzle-makers among us. Done wrong, you will set your borrower and
your bank up for disappointment. Forbearance done right
requires:
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Educating your borrowers on forbearance
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The role of 'Sources and Uses of Funds' to select a reasonable
restructure
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How an unreasonable forbearance will harm the bank as much as
the borrower
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Don't forget tax and insurance payments
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Add a 'relationship' review to your analysis
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Three questions to ask the borrower every time
Recorded in July 2020, the advice continues to be relevant
today. Do not set yourself and your borrower up for default.
Resources:
Gina Marotta Loan Review Worksheet
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
the U.S.
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
Michigan.
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
