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CMLS Financial Ltd. / COVID-19 Update
March 27, 2020

For those Impacted by COVID-19

CMLS remains committed to working with our borrower clients through this difficult time.

For commercial borrower clients seeking information on mortgage payment deferral, CMLS is currently reviewing requests on a case by case basis and prioritizing those demonstrating clear financial distress. We would like to provide the following guidance:

What is mortgage payment deferral?
A mortgage payment deferral is where regularly scheduled mortgage payments (or portions thereof) are postponed for a defined period of time. (1) Any interest payments that are deferred are added to the outstanding balance and will accrue interest and (2) any principal payments that are deferred will be made up with increased payments over a defined period of time following deferral. Following the payment deferral period, the lender may adjust the mortgage payment to reflect the increased outstanding mortgage amount at the end of the payment deferral period – resulting from capitalized interest – and/or the agreed-upon repayment period of any deferred principal.

What is the qualification for payment deferrals?
The ability to qualify for mortgage payment deferral will depend on financial need and the mortgage product you hold. Please click on each product below for additional guidance.

CMHC Insured Multifamily

CMLS remains committed to working with our borrower clients through this difficult time. For mortgages insured by CMHC, we will continue to work within the guidelines set-out by CMHC under Workout Arrangements in the existing Servicing policy.

For commercial borrower clients seeking information on Mortgage Payment Deferral for CMHC-insured mortgages, we would like to provide the following guidance:

To evaluate any payment deferrals or discuss any alternate arrangements please provide us with the following information as soon as possible.

  • March 2020 Rent Roll
  • April 2020 Rent Roll including commentary related to the tenants who have not paid rent. Please provide evidence of such (e.g. emails) along with a reason for the non-payment and expected rent payment date. Please indicate if the tenant has applied for Income Support through the Federal Government.
  • Current copy of bank statements for the borrower, guarantors and the property (min 30 days history)
  • Most recent 12-month operating statement for the property – December 2019 or later
  • Portfolio update from the borrowing group. Real estate listings as of December 2019 or later including property type, overall asset value and current leverage.

When assembled please return the information as soon as possible to your CMLS relationship manager.

Conventional Commercial

The prioritization, assessment and approval of deferred mortgage payments will be based on financial need in terms of cash flow disruption, sources of liquidity and insolvency.

To evaluate any payment deferrals or discuss any alternate arrangements please provide us with the following information as soon as possible.

  • March 2020 rent roll or April rent roll, if available
  • Identification of tenants requesting rent deferrals and/or messaging an inability or unwillingness to pay rents, and any supporting correspondence
  • Bank statements to evidence missed rental payments
  • Most recent twelve month operating statement - December 2019 or later
  • Sponsor portfolio update – asset listing as of December 2019 or later: property type, overall asset value/leverage, pro forma NOI and commentary on impact of Covid-19
  • For any 2nd mortgage, an update on the current state of the 1st (is it still in good standing, are those payments being deferred)

When assembled please return the information as soon as possible to your CMLS relationship manager.

Conventional Commercial (CMBS)*

Note that this loan is in a securitized commercial mortgage pool and subject to explicit requirements with respect to payment modifications and deferrals. To help us evaluate your situation please provide us with the following information as soon as possible.

  • March 2020 rent roll or April rent roll, if available
  • Identification of tenants requesting rent deferrals and/or messaging an inability or unwillingness to pay rents, and any supporting correspondence
  • Bank statements to evidence missed rental payments
  • Most recent twelve month operating statement - December 2019 or later
  • Sponsor portfolio update – asset listing as of December 2019 or later: property type, overall asset value/leverage, pro forma NOI and commentary on impact of Covid-19

When assembled please return the information as soon as possible to your CMLS relationship manager.

*Please check the loan number on your mortgage statement. If this begins with a “6” or a “7”, you have a CMBS mortgage.

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