BOMA San Francisco Members:
With the assistance of the Industry Defense Fund, BOMA International and BOMA Detroit have joined an industry–wide coalition in filing an Amicus Brief in the Michigan Court of Appeals to reverse a decision in a case involving the interpretation of loan agreements used for commercial mortgage backed securities (CMBS) that could harm the commercial real estate industry. In simple terms, the Grand Traverse County, Michigan Circuit Court found a way, not contemplated by the borrower or the lender at the time of the loan, to change a loan from a non-recourse, which have no guaranty and are secured only by the mortgage on the property, to a recourse loan, in which there would be personal liability. If sustained on appeal, this case could severely impact nearly $700 billion in CMBS loans that are currently outstanding and threaten an already fragile commercial real estate market.
For more information on the case, visit the Michigan Court of Appeals website.
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