CMBS Weekly: Freeze frame

Research evidence excerpt

CMBS Weekly: Freeze frame

Chong Sin AC (1-212) 834-2611 Eli Khaim (1-212) 622-0388 North America Securitized J P M O R G A Nchong.c.sin@jpmorgan.com eli.khaim@jpmorgan.com Products Research

J.P. Morgan Securities LLC J.P. Morgan Securities LLC

Terrell Bobb (1-212) 834-5947 10 July 2026

terrell.bobb@jpmchase.com

J.P. Morgan Securities LLC

CMBS Weekly

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• If you’ve found our work helpful over the past year, please consider supporting us

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• Following our note two weeks ago on the NYC Rent Guidelines Board’s move to freeze

rents on the ~1mn rent stabilized units in NYC, we attempted this week to quantify NYC

CMBS rent stabilized exposures

• In total, across Freddie, Fannie, conduit, SASB, and CRE CLOs, we counted about

$105bn of NYC multifamily exposures. Of this amount, we think at least 45% is market

rate rentals by unit allocated balance. In total, at least 43% are rent stabilized

• The good news is that only 53.5% of the CMBS buildings we’ve identified as having

rent stabilized units contain 25%+ rent stabilized units. 46.5% of these CMBS buildings

have less than 25% rent stabilized units where the majority of their units are market rate

and can act to stave off some of the margin pressures

• In conduit CMBS deals, the servicer's reimbursement of advances takes priority over all

other claims with regard to the allocation of principal proceeds. While the reimburse-

ment of servicer advances does not always result in a loan taking losses, it can at times

lead to higher realized losses, especially for loans that have been delinquent for an

extended period