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Kroll Bond Rating Agency Assigns Preliminary Ratings to MSCI 2015-XLF1

NEW YORK–(BUSINESS WIRE)–

Kroll Bond Rating Agency, Inc. (KBRA) is pleased to announce the assignment of preliminary ratings to two classes of the MSCI 2015-XLF1 securitization, a $545.1 million large loan floating-rate CMBS transaction (see ratings listed below).

MSCI 2015-XLF1 is a CMBS large loan floating-rate transaction collateralized by five, non-recourse, first lien mortgage loans with an aggregate in-trust principal balance of $545.1 million. The senior pooled notes, together with 680 Madison Avenue, total $348.4 million and include Ashford Full Service Portfolio ($103.8 million), Ashford Select Service Portfolio ($31.4 million), and SOMA Towers ($28.2 million). Both the senior pooled and the subordinate non-pooled notes, which total $85.6 million, will be contributed to the trust. There is one non-pooled loan, Elad Portfolio, which is the sole source of cash flow for the “ELD” certificates, which are not rated by KBRA. As a result, the trust loan counts, balances, and percentages herein exclude the non-pooled Elad Portfolio loan.

The majority of the pool consists of lodging properties (50.0%) which serve as collateral for two loans, Ashford Full Service Portfolio ($103.8 million, 5 assets) and Ashford Select Service Portfolio ($31.4 million, 5 assets). Retail exposure (42.6%) is represented by 680 Madison Avenue ($185.0 million, 1 asset). The remaining property type exposure, multifamily (7.4%), consists of the SOMA Towers loan. The properties are located in ten states with three individual state exposures that represent more than 10.0% of the pool balance: New York (42.6%), California (12.7%), and Minnesota (10.2%).

KBRA’s analysis of the transaction involved a detailed evaluation of the underlying cash flows using our CMBS Property Evaluation Guidelines and the application of our CMBS Single-Borrower & Large Loan Rating Methodology. The results of the analysis yielded a KNCF for the underlying collateral properties that was, on average, 4.9% less than the issuer cash flow for the pooled loan components. KBRA applied our stressed capitalization rates to the KNCF to arrive at valuations of the underlying properties. The KBRA values were, on average, 29.7% less than the appraiser’s valuation for the pooled loan components. The resulting KBRA in-trust loan to value (KLTV) was 66.5% for the pooled loan components and the KLTV was 88.8% for the total in-trust balance, inclusive of the subordinate loan components. All of the loans have additional financing in place in the form of mezzanine debt. Inclusive of this additional debt, the weighted average all-in KLTV for the trust assets was 118.4%. As part of our analysis of the transaction, we also reviewed and considered third party engineering and environmental reports, our analysts’ site visits to the collateral properties, and the transaction structure.

Preliminary Ratings Assigned: MSCI 2015-XLF1

Class Balance Rating A $213,400,000 AAA(sf) X-CP(1) $348,400,000 NR X-EXT(1) $348,400,000 NR B $60,500,000 AA-(sf) C $45,100,000 NR D $29,400,000 NR AFS1(2) $37,100,000 NR AFS2(2) $27,600,000 NR ASL1(2) $9,100,000 NR ASL2(2) $8,000,000 NR SOMA(2) $3,800,000 NR ELD1(3) $55,100,000 NR ELD2(3) $14,100,000 NR ELD3(3) $10,300,000 NR ELD4(3) $8,200,000 NR ELD5(3) $15,900,000 NR ELD6(3) $7,500,000 NR ELDX(3) $87,700,000 NR

1 Notional amount
2 Represents a loan-specific class of certificates and is only entitled to distributions from the corresponding subordinate non-pooled component of the related mortgage loan.
3 Represents a loan-specific class that is only entitled to proceeds received with respect to the Elad Portfolio loan.

Related publications: (available at www.kbra.com)

CMBS: MSCI 2015–XLF1 Presale Report

CMBS: Single Borrower & Large Loan Rating Methodology, published August 8, 2011

CMBS Property Evaluation Guidelines, published June 10, 2011

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

FinanceLoansCMBS Contact: Kroll Bond Rating Agency, Inc.
Analytical Contacts:

Michael McGorty, (646) 731-2393

mmcgorty@kbra.com

or

Michael Brown, (646) 731-2307

mbbrown@kbra.com

or

Ken Kor, (646) 731-2339

kkor@kbra.com

or

Robin Regan, (646) 731-2358

rregan@kbra.com

or

Follow us on Twitter!
@KrollBondRating […]

4 Myths About Using an IRA to Buy an Investment Property

CHICAGO–(BUSINESS WIRE)–

Buying a single-family investment property is an effective way toward long-term profits, but some assume this type of investment is only for the big Wall Street firms or those who have a lot of cash on hand. However, leveraging funds in an Individual Retirement Account (IRA) can put purchasing an investment property within reach for many investors. Tinley Park, Ill.-based MACK Investments, which owns and manages nearly 1,500 single-family rental properties in the Chicago area, debunks the myths about buying an investment property through an IRA, and explains the truth about how it is actually one the most effective ways to boost retirement income.

Myth #1: It’s not legal

Leveraging an IRA to purchase an investment property is legal in all 50 states. However, many IRA investors do not have enough cash in their accounts to make a full purchase, so purchasing an investment property through an IRA is achieved through a non-recourse loan, not a traditional mortgage. Simply put, a non-recourse loan means that, in the case of a default, the bank can only be compensated by repossessing the property, and may not pursue any funds from the IRA account or the investor’s other assets.

“Because the single-family rental market has exploded over the past couple of years, more banks are recognizing the earnings potential and providing non-recourse loans,” said John Gutman, vice president of Sales & Acquisitions at MACK Investments. The firm delivers turn-key single-family investment properties, providing a fully redeveloped, tenanted and managed property. MACK Investments partners with Bridge Capital, a regional financing provider for single-family rental properties, which has provided non-recourse mortgage loans on more than 350 properties since 2010. “When an investor selects a MACK Investments property for purchase, and needs to borrow a portion of the purchase price, we can refer them to a trusted provider like Bridge to explore non-recourse loan options. For us, it’s rewarding to be able to explain this option, because for some investors, leveraging their IRA allows them to invest in a long-term asset that otherwise may have been unattainable.”

Non-recourse loans are required because the purpose of the investment property is to earn long-term income and, therefore, only allows the purchase of revenue-generating real estate. Property types that do not qualify for a non-recourse loan include vacation homes, business properties, or homes rented out to family members.

A custodial account must be established to manage ownership of the investment property through a third-party custodian. “Most lenders have relationships with a number of custodians that the investor can choose from, or they can opt to select their own custodian,” said Gutman.

Myth #2: It’s too complicated for the average investor

Purchasing and owning an investment property through an IRA is actually quite simple. All rental income will be deposited into the IRA account and all payments will come out of the account. “Once purchased, the mortgage, taxes and other expenses on the home will come from the IRA,” said Gutman. “But the profits are also going back into the IRA, making it a self-sufficient way to save for retirement without impact on the investor’s other finances.”

To establish a custodial account, money is transferred from the IRA through the help of a custodian. Investors can typically borrow up to 50 percent of the property’s value, and the account owner does not have to personally qualify for a loan since the property being purchase is evaluated to make the loan.

When using IRA funds to purchase an investment property, the investor is required to engage third-party providers for any repairs or modifications to the home. “Buying a turn-key property through a provider like MACK Investments, which delivers a fully redeveloped, tenanted and managed property, meets that requirement while lessening the burden on the investor.”

Myth #3: It will end up lowering your retirement savings

“It may seem counter-intuitive in some ways, but using an IRA to buy an investment property not only provides the means to purchase the home, but the money earned on the property, like monthly rent, will grow tax-deferred within the IRA,” said Gutman. After the initial withdrawal of funds to purchase the home, income such as rent can be immediately deposited back into the account. “Considering the value of the asset after purchase, it is a significant increase to the retirement account.”

Gutman added, “It’s common to believe that you shouldn’t touch your retirement funds, but it pays off when you use it to buy an appreciating asset like this. An IRA account isn’t about earning money today, its focus is on long-term earnings 10, 20, 30 years down the road. Real estate fits perfectly into that investment philosophy.”

MACK Investments has delivered thousands of single-family turn-key investment properties to investors over the past 17 years, and provides a one-year guarantee on rental income. “Our guarantee is unmatched in the industry. Our investors typically enjoy a leveraged return of 20 percent or more in the first year,” said Gutman.

Myth #4: Your retirement savings will be put at risk

According to Gutman, many investors are encouraged by the fact that, since it’s managed through a non-recourse loan, there is no risk to their other assets in the event of a default. “Bridge Capital is one of very few banks specializing in this space, as many banks don’t want the risk associated with a non-recourse loan. However, understanding the opportunities these types of investments provide to average investors, Bridge has committed to making this option available,” he said.

“Leveraging an IRA to buy an investment property is drawing more and more investors, particularly as the demand for rental properties remains strong,” said Gutman. “This option provides a unique opportunity to leverage existing retirement funds, while growing them at the same time.”

To learn more about how to leverage an IRA to buy real estate, please contact a lending, tax or financial planning professional. For information on single-family investment property opportunities, please contact MACK Investments at (888) 449-0632.

About MACK Investments

MACK Investments, a division of MACK Companies, is a premier provider of turn-key residential real estate investments for individual and institutional clients across the globe. MACK Companies is a redevelopment firm offering investment, construction, residential, commercial, landscape and brokerage services. Founded in 1998 by Chicago-native father-and-son duo James and Jim McClelland, MACK Companies was built out of a shared passion for real estate. Today, MACK Companies is one of the largest providers of turn-key real estate with a portfolio of more than 1,500 properties in the Chicago area. Leveraging a team of professionals in various disciplines, MACK Companies is able to function at the highest levels of expertise in all specialized sectors of real estate.

MULTIMEDIA AVAILABLE:http://www.businesswire.com/cgi-bin/mmg.cgi?eid=51036495&lang=en

FinanceReal EstateIRA Contact:

For MACK Investments

Julie Liedtke, (312) 267-4521

jliedtke@taylorjohnson.com […]

Trying to time the market with a mortgage?

Thumbnail

Dear Dr. Don,
We currently own a multifamily unit with two 30-year fixed mortgages. One is for $200,000 at 5.25 percent and the other is for $65,000 at 3 percent. Our home is valued at $280,000. We would like to refinance and have cash to pay down the mortgage so that we will have 5 percent equity in the house to refinance. Do you recommend using the cash to pay down the debt to refinance or waiting until the home value rises? We also want to buy another home in the next few years in addition to the one we have.

Thanks,
— Michelle Myriad

Compare refinance rates and lower your monthly payments

Dear Michelle,
Unless you’re having cash flow problems that you’re trying to resolve by refinancing the two mortgages into one loan, the assumption here is that the lender on the $65,000 mortgage won’t sign off on refinancing the $200,000 loan, which forces you to refinance both loans. Otherwise, you’d hold on to that 3 percent rate.

Bringing cash to closing can get you that new mortgage, but you’ll still wind up paying private mortgage insurance on a conventional mortgage with less than 20 percent down. If you live in the home, an FHA loan requires less money down, but you’ll pay mortgage insurance upfront and in your monthly mortgage payment. An FHA loan requires a 3.6 percent down payment, and you’ve got that much equity in the property now without bringing cash to closing.

I’d lean toward refinancing now versus waiting for home values to rise, just because I don’t think you’ll like where mortgage rates go if you wait. It also makes things easier by having the financing in place before shopping for your next property.

Compare the cost of a cash-in closing on a conventional mortgage with the cost of closing an FHA loan. Private mortgage insurance doesn’t last forever with a conventional loan, but the mortgage insurance premium is permanent on an FHA financing. The difference in interest rates between the two loans should be small, but that’s also important in determining which loan is right for you.

[…]

Kroll Bond Rating Agency Assigns Preliminary Ratings to Hyatt Hotel Portfolio Trust 2015-HYT

NEW YORK–(BUSINESS WIRE)–

Kroll Bond Rating Agency, Inc. (KBRA) is pleased to announce the assignment of preliminary ratings to the Hyatt Hotel Portfolio Trust 2015-HYT transaction (see ratings list below). Hyatt Hotel Portfolio Trust 2015-HYT is a CMBS single borrower transaction that is collateralized by a $340.0 million floating rate loan that was originated by JPMorgan Chase Bank, National Association and an affiliate of Goldman Sachs Mortgage Company. The loan has an initial two year term with three, one-year extension options. Proceeds from the mortgage loan, along with $167.0 million of mezzanine financing, $117.7 million of cash equity and a $19.0 million letter of credit contributed by the loan sponsor, were used to facilitate the acquisition of a portfolio of 38 hospitality assets.

The loan is secured by the borrower’s fee simple interests in 35 lodging properties totaling 4,530 keys, as well as the leasehold interest in three assets totaling 420 keys. Twenty-seven of the properties are select-service hotels operated under the Hyatt Place flag. These assets were built between 1990 and 2013, and range in size from 79 to 162 keys. The remaining 11 assets are extended-stay hotels operated under the Hyatt House flag. These assets were built between 1997 and 2010. All of the properties in the portfolio have been renovated since 2007, and a total of $41.0 million ($8,277 per key) has been spent on capital improvements across the portfolio from 2007 to 2014. Over 95% of the collateral properties by ALA are located in markets considered to be primary or secondary by KBRA. The primary market exposure (19.9%) includes two of the ten largest properties by ALA which equates to 9.4% of the portfolio balance. In addition, one of the portfolio’s five largest MSA concentrations is in a primary market, Boston (4.9%).

KBRA’s analysis of the transaction included a detailed evaluation of the properties’ cash flows using our CMBS Property Evaluation Guidelines, and the application of our CMBS Single Borrower & Large Loan Rating Methodology. For the purposes of our analysis, we determined KBRA net cash flow (KNCF) for each asset, and applied KBRA capitalization rates to each property’s KNCF to determine property value. KBRA adjusted this value to give partial credit in the amount of $30.0 million for a capital improvement reserve that was funded at origination. The weighted average variance to the issuer’s NCF was 2.4%, and the weighted average value variance to each property’s third party appraisal values was 34.0%. The analysis produced an aggregate KBRA value of $371.3 million and an in- trust KLTV of 91.6%.

For further details on KBRA’s analysis of the transaction, please see our Pre-Sale Report, entitled Hyatt Hotel Portfolio Trust 2015-HYT, which was published today at www.kbra.com.

The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

Preliminary Ratings Assigned: Hyatt Hotel Portfolio Trust 2015-HYT

Class Expected Rating Balance (US$) A AAA(sf) $110,070,000 X-CP AAA(sf) $289,000,000(1) X-EXT AAA(sf) $340,000,000(1) B AA-(sf) $40,130,000 C A-(sf) $29,800,000 D BBB-(sf) $43,000,000 E BB-(sf) $62,100,000 F B-(sf) $54,900,000

(1)Notional balance.

17g-7 Disclosure:

All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled Hyatt Hotel Portfolio Trust 2015-HYT 17g-7 Disclosure Report.

Related publications: (available at www.kbra.com)

CMBS Presale: Hyatt Hotel Portfolio Trust 2015-HYT

CMBS Property Evaluation Guidelines, published June 10, 2011

CMBS Single Borrower & Large Loan Rating Methodology, published February 23, 2012

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

BondsFinanceHyatt Hotel Contact: Analytical Contacts:

Laura Wolinsky, (646) 731-2379

lwolinsky@kbra.com

or

Ken Kor, (646) 731-2339

kkor@kbra.com

or

Robin Regan, (646) 731-2358

rregan@kbra.com

or

Michael B. Brown, (646) 731-2307

mbbrown@kbra.com […]

Nama generates €8.6bn in cash in 2014

The National Asset Management Agency (Nama) generated cash of some €8.6 billion in 2014, thanks to a healthy returnfrom the sale of loans and property during the year.

According to an end of year statement from the State’s “bad bank”, some € 8.6 billion in cash was generated in 2014, including € 7.8 billion from the proceeds of asset disposals, bringing total cash generated to date up to €23.7 billion.

Nama chairman Frank Daly and Nama CEO Brendan McDonagh said that 2014 was a “tremendous year in terms of cashflow generation and accelerated debt paydown and in terms of Nama making a significant contribution to the delivery of social housing, private housing and the Dublin Docklands SDZ and to employment preservation in trading businesses.”

Slide in corporate insolvencies sign of recovering economy Weak global manufacturing figures suggest more central bank action Property prices to continue to rise in 2015 – Sherry Fitzgerald

At end-2014, Nama held cash and cash equivalent balances of € 1.8 billion, after making Nama senior bond redemptions and other debt repayments totalling € 16.6 billion since inception.

To date, Nama has realised proceeds of € 18.7 billion from the sale of loans and property and other assets held as security; € 7.8 billion (42%) of this was realised in 2014, including the sale of Project Eagle ((loans secured by assets controlled by Northern Ireland debtors), and Project Tower (loans secured by investment and developments assets, mainly in Ireland, Britain and Germany).

In its statement, Nama said that a “strong flow” of asset and loan portfolios will be offered to the market during the course of 2015, assuming that current investor interest is sustained.

On the funding front, Nama has approved a total of € 3.2 billion in advances to debtors and receivers, and it said that it is prepared to advance additional funding for commercially viable Irish projects, including the Dublin Docklands development programme.

With respect to residential housing, Nama is on target to meet its goal of completing 4,500 additional units by the end of 2016, with more than 1,000 units already delivered.

By the end of 2014 Nama had delivered over 1,000 social housing units, and predicts that a further 1,000 houses and apartments will be taken up by local authorities and housing bodies in 2015.

Nama also said that it has played a “major part” in facilitating the examinership of trading businesses during 2014, which resulted in safeguarding close to 1,000 jobs,

[…]

Kroll Bond Rating Agency Assigns Preliminary Ratings to COMM 2014-FL5

NEW YORK–(BUSINESS WIRE)–

Kroll Bond Rating Agency, Inc. (KBRA) is pleased to announce the assignment of preliminary ratings to five classes of the COMM 2014-FL5 securitization, a $557.1 million large loan floating rate CMBS transaction (see ratings listed below).

The collateral for the transaction consists of six first-lien mortgage loans, five of which have been bifurcated into a senior pooled component and one or more subordinate non-pooled components totaling $377.9 million and $119.2 million, respectively. Each subordinate non-pooled loan component serves as the sole source of cash flow for a loan-specific class of certificates, none of which are rated by KBRA. In addition, one loan Sava II Portfolio ($60.0 million), will not be pooled and proceeds received with respect to this loan are the sole source of cash flow for the Class “SV” certificates which are not rated by KBRA. As a result, the trust loan counts, balances and percentages herein exclude the non-pooled Sava II Portfolio loan.

The pooled senior loan components consist of K Hospitality Portfolio ($113.9 million), Peachtree Center Portfolio ($117.4 million), Hilton Fort Lauderdale ($58.3 million), Park Central ($50.9 million), and Marriott Fairview Park ($37.5 million). The majority of the pool consists of lodging properties (61.9%) which serve as collateral for three loans, K Hospitality Portfolio ($113.9 million, 20 assets), Hilton Fort Lauderdale ($58.3 million, 1 asset), and Marriott Fairview Park ($37.5 million, 1 asset). Office assets (32.9%) secure the Marriott Fairview Park loan ($37.5 million, 1 asset) and a large component of the Peachtree Center Portfolio loan ($117.4 million, 6 assets). The remaining property type exposures consist of the parking (2.7%, 3 assets) and retail (2.4%, 1 asset) components of the Peachtree Center Portfolio loan. The properties are located in seven states with three individual state exposures that represent more than 10.0% of the pool balance: Texas (32.2%), Georgia (25.3%) and Florida (17.5%).

KBRA’s analysis of the transaction involved a detailed evaluation of the underlying cash flows using our CMBS Property Evaluation Guidelines and the application of our CMBS Single-Borrower & Large Loan Rating Methodology. The results of the analysis yielded a KNCF for the underlying collateral properties that was, on average, 3.4% less than the issuer cash flow for the pooled loan components. KBRA applied our stressed capitalization rates to the KNCF to arrive at valuations of the underlying properties. The KBRA values were, on average, 34.9% less than the appraiser’s as-is valuation for the pooled loan components. The resulting KBRA in-trust loan to value (KLTV) was 68.9% for the pooled loan components and the KLTV was 90.9% for the total in-trust balance, inclusive of the subordinate loan components. Four of the five pooled loans have additional financing in place in the form of mezzanine debt. Inclusive of this additional debt, the weighted average all-in KLTV for the trust assets was 114.9%. As part of our analysis of the transaction, we also reviewed and considered third party engineering and environmental reports, our analysts’ site visits to the collateral properties, and the transaction structure.

For complete details on the analysis, please see our presale report, COMM 2014-FL5 published today at www.kbra.com. The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

Preliminary Ratings Assigned: COMM 2014-FL5

Class Balance Expected Rating A $210,399,000 AAA(sf) X-CP(1) $377,863,000 AAA(sf) X-EXT(1) $377,863,000 AAA(sf) B $60,706,000 AA-(sf) C $31,547,000 A-(sf) D $75,211,000 NR KH1(2) $32,750,000 NR KH2(2) $21,045,200 NR HFL1(2) $16,772,000 NR HFL2(2) $11,959,000 NR MFP1(2) $10,375,000 NR MFP2(2) $5,098,000 NR PC1(2) $9,197,000 NR PC2(2) $3,390,000 NR PCH(2) $8,632,000 NR SV1(3) $25,622,000 NR SV-X-CP(3) $60,000,000 NR SV-X-EXT(3) $60,000,000 NR SV2(3) $10,018,000 NR SV3(3) $10,356,000 NR SV4(3) $13,995,000 NR 1 Notional amount 2 Represents a loan-specific class of certificates and is only entitled to distributions from the corresponding subordinate non-pooled component of the related mortgage loan.

3 Represents a loan-specific class that is only entitled to proceeds received with respect to the Sava II Portfolio loan.

17g-7 Disclosure

All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found here.

Related publications (available at www.kbra.com):

CMBS: COMM 2014-FL5 Presale Report
CMBS: Single Borrower & Large Loan Rating Methodology, published August 8, 2011
CMBS Property Evaluation Guidelines, published June 10, 2011

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

BondsLoansCMBS Contact: Kroll Bond Rating Agency
Analytical:

Aleksandra Simanovsky, 646-731-2434

asimanovsky@kbra.com

or

Robin Regan, 646-731-2358

rregan@kbra.com

or

Michael Brown

John Grosso

646-731-2307

mbbrown@kbra.com […]

Kroll Bond Rating Agency Assigns Preliminary Ratings to JPMCC 2014-FL6

NEW YORK–(BUSINESS WIRE)–

Kroll Bond Rating Agency, Inc. (KBRA) is pleased to announce the assignment of preliminary ratings to nine classes of JPMCC 2014-FL6, a $504.0 million large loan floating rate CMBS transaction (see ratings listed below).

The collateral for this transaction consists of thirteen mortgage loans secured by the related borrowers’ interests in forty collateral properties. Ten (72.4%) of the thirteen loans have been divided into a senior pooled component and a subordinate non-pooled component. The aggregate pooled trust balance, which also includes the three non-componentized loans, is $410.0 million and the total non-pooled component balance is $94.0 million. Each non-pooled loan component serves as the sole source of cash flow for a loan-specific class of certificates. Unless otherwise specified, all pool percentage references reflect the aggregate in-trust balance of the pooled and non-pooled components.

Eleven loans (83.2%) are secured by the borrowers’ fee simple interests in the related properties. Two loans, Hyatt Regency DFW (2nd largest, 12.7%) and Hilton Scottsdale Resort & Villas (11th largest, 4.1%), are secured by the borrower’s leasehold interests in the related properties. There are three property type exposures which exceed 10.0% of the pool, which include lodging (47.3%), office (34.8%), and retail (13.4%). The loan collateral is located in twelve states, four of which represent more than 10.0% of the pool balance, Florida (21.9%), Texas (12.7%), Georgia (11.1%), and Washington DC (10.5%).

KBRA’s analysis of the transaction involved a detailed evaluation of the underlying cash flows using our CMBS Property Evaluation Guidelines and the application of our CMBS Single-Borrower & Large Loan Rating Methodology. The results of the analysis yielded KNCF for the underlying collateral properties that was, on average, 2.1% less than issuer cash flow. KBRA applied our stressed capitalization rates to KNCF to arrive at valuations of the underlying properties. The KBRA values were, on average, 34.5% less than the appraiser’s as-is valuation. The resulting KBRA in-trust Loan to Value (KLTV) was 86.6%. All of the loans have additional financing in the form of mezzanine debt. The weighted average all-in KLTV for the loans was 127.6%. As part of our analysis of the transaction, we also reviewed and considered third party engineering and environmental reports, our analysts’ site visits of the collateral properties, and the transaction structure.

For complete details on the analysis, please see our presale report, JPMCC 2014-FL6 published today at www.kbra.com. The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

Preliminary Ratings Assigned: JPMCC 2014-FL6

Class Balance Expected Rating A $282,800,000 AAA(sf) X-CP(1) $409,600,000 AAA(sf) X-EXT(1) $409,600,000 AAA(sf) B $40,600,000 AA-(sf) C $31,500,000 A-(sf) D $55,060,000 NR DFW1(2) $12,800,000 NR DFW2(2) $6,900,000 NR MTP1(2) $8,200,000 NR MTP2(2) $13,800,000 NR PHW1(2) $9,400,000 NR PHW2(2) $6,100,000 NR BAT1 (2) $6,400,000 NR BAT2 (2) $1,037,000 NR VINE (2) $3,100,000 BB-(sf) WCP1 (2) $3,300,000 BB-(sf) WCP2 (2) $3,900,000 NR TLAN (2) $2,130,000 NR FMS1 (2) $4,100,000 BB(sf) FMS2 (2) $3,750,000 B-(sf) HSRV (2) $4,700,000 NR BWT1 (2) $2,200,000 NR BWT2 (2) $2,200,000 NR

1 Notional amount.

2 Represents a loan-specific class of certificates and is only entitled to distributions from a subordinate non-pooled component of the related mortgage loan.

Related publications: (available at www.kbra.com)

CMBS: JPMCC 2014-FL6 Presale Report

CMBS: Single Borrower & Large Loan Rating Methodology, published August 8, 2011

CMBS Property Evaluation Guidelines, published June 10, 2011

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

BondsFinanceCMBS Contact: Analytical:

Kroll Bond Rating Agency, Inc.

Sacheen Shah, 646-731-2417

sshah@kbra.com

or

Michael B. Brown, 646-731-2307

mbbrown@kbra.com

or

Robin Regan, 646-731-2358

rregan@kbra.com

or

Follow us on Twitter!
@KrollBondRating […]

Uranium Resources Reports 3Q 2014 Results and Estimates Lower Cash Spend in 2015

CENTENNIAL, Colo.–(BUSINESS WIRE)–

Uranium Resources, Inc. (URRE) reported its 3Q 2014 financial results with cash and cash equivalents of $7.9 million at the end of the third quarter and achieving one of its 2014 goals to reduce the cash spend below $1.0 million per month during the third quarter.

Highlights for 3Q 2014 and to date:

Net cash used in operating activities decreased by 13% to $2.9 million in 3Q 2014 compared with $3.3 million for 3Q 2013. Operating and mineral property expenses increased 5% to $1.0 million in 3Q 2014 from $0.9 million in 3Q 2013 but were lower by 7% from 2Q 2014. The Company is enhancing its mid-term path to production through a strategic and creative non-cash asset exchange agreement whereby it is acquiring prospective properties in South Texas, as announced in the Company’s news release of September 8, 2014.

Christopher M. Jones, President and Chief Executive Officer, said, “During the third quarter, we achieved one of our 2014 goals to reduce our cash spend below $1.0 million per month and we expect to continue at this pace in 2015. We project our total cash budget for 2015 to be less than $10 million or approximately 20% lower than our total spend in 2014.”

Mr. Jones continued, “As part of our cash conservation measures, we are temporarily curtailing generation of technical reports using the Canada National Instrument 43-101 standards for our projects, including rescheduling of the technical report for the Churchrock Project. We will deliver a technical report for our Roca Honda Project later this month as that work is almost complete.”

Financial Overview

The Company’s net loss in the third quarter was $4.0 million compared with a net loss of $3.3 million in 3Q 2013. The net loss increase was due to higher interest expense of $675,000, including non-cash amortization of debt discount of $485,000, and an increase of $47,000 in mineral property expenses, partially offset by a non-cash gain in derivatives of $145,000.

Mineral property expenses were 5% higher at $1.0 million in 3Q 2014 compared with a year ago, reflecting timing of a land holding cost payment for a project. The Company’s general and administrative expenses were $2.2 million in 3Q 2014, essentially flat against 3Q 2013, as lower payroll and insurance rates offset $133,000 in consulting services for one-time due diligence costs related to the land exchange transaction.

Cash and equivalents were $7.9 million at September 30, 2014 compared with $2.0 million at September 30, 2013 and $1.1 million at December 31, 2013. On November 5, 2014, the cash balance was approximately $7.0 million and total shares outstanding was 25.2 million.

Table 1: Financial Summary (unaudited)

($ in 000) Q3 2014 Q3 2013 Variance Cash and Cash Equivalents $ 7,887 $ 2,007 293 % Current Assets 9,085 2,474 267 % Current Liabilities 2,302 2,761 -17 % Working Capital 6,783 (287 ) n.a. Convertible Loan1 8,000 – n.a. Total Shareholders’ Equity $ 28,542 $ 33,512 -15 %

1.

The current convertible loan totals $8.0 million at September 30, 2014. The convertible loan facility is recorded under long-term liabilities on the Company’s balance sheet at September 30, 2014 as a derivative liability at a fair value of $3.8 million and the convertible loan’s residual value of $3.9 million.

Table 2: Financial and Capital Summary (unaudited)

($ and Shares in 000, Except Per Share and Uranium Price)

Q3 2014

Q3 2013 Variance

First Nine
Months 2014

First Nine
Months 2013

Variance Net Cash Used in Operations $ (2,865 ) $ (3,289 ) -13 % $ (9,647 ) $ (11,513 ) -16 % Mineral Property Expenses 987 940 5 % 2,929 3,682 -20 % General and Administrative 2,203 2,175 1 % 7,002 6,750 4 % Interest & Fees Paid on Convertible Loan 200 – n.a. 885 – n.a. Net Loss $ (3,994 ) $ (3,273 ) 22 % $ (10,583 ) $ (11,943 ) -11 % Net Loss Per Share $ (0.16 ) $ (0.17 ) -6 % $ (0.44 ) $ (0.63 ) -30 % Avg. Weighted Shares Outstanding 24,954 19,820 26 % 23,987 18,996 26 % Uranium Average Spot Price (source:UxC) $ 31.17 $ 35.87 -13 % $ 31.99 $ 39.54 -19 %

During the first nine months of 2014, the Company utilized its At The Market (ATM) sales agreement and sold 788,186 shares for net proceeds of $2.6 million. There remains approximately $6.3 million under the ATM sales agreement. The Company expects that its existing cash and the ATM will provide it with working capital through the third quarter of 2015.

Mr. Jones commented, “We have the financial flexibility over the near term to realize further cost reductions and adjust our business priorities. The recent fall in commodity stocks, including in the uranium sector, emphasizes our continuing need to be financially nimble. We will be judicious in monitoring our financial position and maintain our ability to restart production when uranium prices strengthen.”

All periods prior to 4Q 2013 were restated to expense certain costs. The restatement did not impact the Company’s cash position, financing agreement or progress on operating plans.

Operations

At Rosita in South Texas, wells in a previously mined part of the project area are undergoing plugging as part of restoration work. Both Rosita and Kingsville Dome remain on standby for a potential restart when there is a sustained recovery in uranium prices and such restart would be subject to project financing.

Uranium Market Commentary

Since mid-July 2014, the uranium spot price has increased over 30% to the current $38 per pound level, while the long-term price has crept up only $1 to $45 per pound, according to UxC Consulting. Industry analysts attribute the rise in the spot price to the brief strike at Cameco’s McArthur River Mine in Canada, curtailment of mine production from the still low uranium price and more traders being active in the spot market. In September 2014, a weakening energy sector precipitated declines in the commodity and uranium stocks.

Outlook

During the remainder of 2014, the Company expects to:

Generate a Canada National Instrument 43-101 compliant technical report for the Roca Honda Project in New Mexico, Maintain costs under $1.0 million per month, and Pursue additions of quality mineral resources within an economic haulage distance for processing at the Company’s two facilities in South Texas, as well as opportunistic, value-accretive acquisitions and/or operating/processing agreements.

Conference Call/Webcast Details

The Company is hosting a conference call and webcast to discuss its 3Q 2014 financial results and recent developments today, November 6, 2014, at 11:00 a.m. Eastern time (9:00 a.m. Mountain). The conference call and presentation are also available via a live webcast through the Company’s website, www.uraniumresources.com.

Dial-in Numbers:

+1 (800) 319-4610 (U.S. and Canada)

+1 (604) 638-5340 (International)

Conference ID:

Uranium Resources Conference Call

A replay of the call will be available on the Company’s website through November 27, 2014.

Replay Numbers:

+1 (800) 319-6413 (U.S. and Canada)

+1 (604) 638-9010 (International)

Code:

1426 followed by the # sign.

About Uranium Resources

Uranium Resources, Inc. was incorporated in 1977 to explore, develop and recover uranium. Uranium Resources has two licensed and currently idled processing facilities and over 16,000 acres of prospective in situ recovery (ISR) projects in Texas. In New Mexico, the Company holds a federal Nuclear Regulatory Commission license to recover up to three million pounds of uranium per year using the ISR process at certain properties and controls minerals rights encompassing approximately 200,000 acres in the prolific Grants Mineral Belt in New Mexico, which holds one of the largest known concentrations of sandstone-hosted uranium deposits in the world. The Company acquired these properties over the past 25 years, along with an extensive uranium information database of historic drill hole logs, assay certificates, maps and technical reports for the Western United States.

Cautionary Statement

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as “expects,” “estimates,” “projects,” “anticipates,” “believes,” “could,” and other similar words. All statements addressing operating performance, events or developments that the Company expects or anticipates will occur in the future, including but not limited to statements relating to (i) the timing or occurrence of production at or restoration of the Company’s properties, (ii) future improvements in the demand for and price of uranium, (iii) the adequacy of funding for the Company through 2015, (iv) expected reductions in the Company’s operating expenses and cash spend, (v) the completion of a technical report for the Company’s Roca Honda Project, (vi) additions of reserves and resources or acquisitions, including through the closing of the asset exchange announced in the Company’s news release of September 8, 2014 and (vii) entry into operating or processing agreements are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties include, but are not limited to, (a) the Company’s ability to raise additional capital in the future; (b) spot price and long-term contract price of uranium; (c) the Company’s ability to reach agreements with current royalty holders; (d) operating conditions at the Company’s projects; (e) government and tribal regulation of the uranium industry and the nuclear power industry; (f) world-wide uranium supply and demand; (g) maintaining sufficient financial assurance in the form of sufficiently collateralized surety instruments; (h) unanticipated geological, processing, regulatory and legal or other problems the Company may encounter; and other factors which are more fully described in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any of the Company’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on the Company’s forward-looking statements. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this news release.

Uranium Resources, Inc.

Consolidated Balance Sheets

(Unaudited)

September 30, December 31, 2014 2013 ASSETS

Current Assets:

Cash and cash equivalents $ 7,887,315 $ 1,117,303 Receivables, net 361,550 47,578 Prepaid and other current assets 836,037 638,100

Total Current Assets

9,084,902 1,802,981 Property, plant and equipment, at cost: Property, plant and equipment 96,415,388 96,407,310 Less accumulated depreciation, depletion and impairment (65,780,634 ) (65,566,411 ) Net property, plant and equipment 30,634,754 30,840,899

Restricted cash

4,010,968 4,010,937

Total Assets

$ 43,730,624 $ 36,654,817

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:

Accounts payable $ 754,272 $ 1,243,169 Accrued liabilities 1,337,767 1,775,491 Current portion of asset retirement obligations 203,553 – Current portion of capital leases 6,491 10,543

Total Current Liabilities

2,302,083 3,029,203 Asset retirement obligations, net of current portion 3,839,102 3,833,608 Derivative liability – convertible loan 3,811,876 2,169,408 Convertible loan, related party 3,885,197 1,024,715 Other long-term liabilities and deferred credits 1,350,000 1,350,000 Long-term capital leases, less current portion – 4,495

Total Liabilities

15,188,258 11,411,429

Commitments and Contingencies

Stockholders’ Equity:

Common stock, 200,000,000 shares authorized, $.001 par value; 25,167,846 and 19,820,258 shares issued and outstanding, respectively 25,172 19,824 Paid-in capital 230,579,521 216,703,028 Accumulated deficit (202,052,909 ) (191,470,046 ) Less: Treasury stock (3,813 shares), at cost (9,418 ) (9,418 ) Total Stockholders’ Equity 28,542,366 25,243,388 Total Liabilities and Stockholders’ Equity $ 43,730,624 $ 36,654,817

Uranium Resources, Inc.

Consolidated Statements of Operations

(Unaudited)

Three Months Ended September 30, Nine Months Ended September 30, 2014 2013 2014 2013 (Restated) (Restated)

Operating expenses

Mineral property expenses

$

(986,623

)

$ (940,017 ) $ (2,928,995 ) $ (3,682,470 ) General and administrative (2,202,952 ) (2,174,862 ) (7,001,670 ) (6,749,980 ) Accretion of asset retirement obligations (205,995 ) (97,435 ) (307,612 ) (292,305 ) Depreciation and amortization (68,271 ) (108,720 ) (245,977 ) (341,680 ) Impairment of uranium properties – (3,701 ) – (683,356 ) Total operating expenses (3,463,841 ) (3,324,735 ) (10,484,254 ) (11,749,791 )

Other income/(expenses)

Gain on derivatives 145,010 – 1,604,657 – Interest expense (679,168 ) (3,859 ) (1,717,234 ) (253,485 ) Other income, net 3,615 55,703 13,968 60,238

Total other income/(expense)

(530,543 ) 51,844 (98,609 ) (193,247 )

Net loss

$ (3,994,384 ) $ (3,272,891 ) $ (10,582,863 ) $ (11,943,038 )

LOSS PER SHARE – BASIC AND DILUTED

$ (0.16 ) $ (0.17 ) $ (0.44 ) $ (0.63 )

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING

24,954,029 19,820,258 23,986,792 18,995,957

Uranium Resources, Inc.

Consolidated Statements of Cash Flow

(Unaudited)

Nine Months Ended September 30,

2014

2013

(Restated)

Operating activities:

Net loss $ (10,582,863 ) $ (11,943,038 ) Reconciliation of net loss to cash used in operations: Accretion of asset retirement obligations 307,612 292,305 Amortization of debt discount

1,182,607

– Change in fair value of derivative liability (1,604,657 ) – Decrease in restoration and reclamation accrual (131,562 ) (1,269,663 ) Depreciation and amortization 245,977 341,680 Impairment of uranium properties – 683,356 Stock compensation expense 737,270 299,286 Common stock issued for land obligation 342,595 – Other non-cash items, net

23,174

73,875 Effect of changes in operating working capital items: Decrease in receivables 45,016 258,532 Increase in prepaid and other current assets

(272,968

)

(17,274 ) Increase/(decrease) in payables, accrued liabilities and deferred credits 60,462 (231,931 )

Net cash used in operating activities

(9,647,337

)

(11,512,872 )

Cash flows from investing activities:

Reduction in restricted cash – 5,481,015 Reductions in uranium properties – (122,165 ) Purchases of equipment (6,834 ) – Net cash provided by/(used in) investing activities (6,834 ) 5,358,850 Cash flows from financing activities: Proceeds from convertible loan 5,000,000 – Payments on borrowings (8,547 ) (103,173 ) Issuance of common stock, net

11,519,950

3,599,432 Payment of minimum withholding taxes on net share settlements of equity awards (87,220 ) –

Net cash provided by financing activities

16,424,183

3,496,259 Net increase/(decrease) in cash and cash equivalents 6,770,012 (2,657,763 ) Cash and cash equivalents, beginning of period 1,117,303 4,664,596

Cash and cash equivalents, end of period

$ 7,887,315 $ 2,006,833 Cash paid during the period for: Interest $ 21,301 $ 2,970 Other non-cash transactions: Common stock issued for payment of convertible loan fees and interest $ 676,409 $ – Common stock issued for repayment of short-term loan principal and interest – 5,095,833 Common stock issued for the settlement of litigation 333,847 – Common stock issued for services – 291,500 Restricted stock issued for services – 47 Total other non-cash transactions for the period: $ 1,010,256 $ 5,387,380 FinanceInvestment & Company Information Contact:

Uranium Resources, Inc.

Wendy Yang, Investor Relations

(303) 531-0478

info@uraniumresources.com
www.uraniumresources.com […]

Verify if you are loan worthy

You may have worked hard to put together money for the down payment of a particular loan. But unless a prospective lender thinks that you are loan-worthy via your Cibil report, your plans of getting access to easy credit may get squashed. So here’s the mantra you should know — the six C’s of credit.

Character

Your credit report is a reflection of whether or not you have good credit character. Good financial credit character is displayed by someone who meets his financial obligations on time such as credit card bills and other loan EMIs.

Even if you are sure that you are doing so, it is prudent to check your Cibil report at least once annually to see if everything is in order and your financial obligations appear as they exist in your credit report.

Capacity

When you make a loan application, your lender will ask you to submit a whole lot of income-related documents such as salary slips and IT returns.

This is to judge whether you have the ability to make a timely repayment of the loan. A bank will process your loan application only after it is convinced that you have enough cash left after paying off current fixed monthly financial obligations.

Cash flow

How much of your income is left once you meet your other debt obligations and your bills? This portion of your income stream will qualify as cash flow, and the lender needs to be assured that you have enough of it.

Capital

While assessing your loan eligibility, the lender will also look at your capital or the amount you are left with after you have met your debt obligations.

If you have a property in your name, it will work in your favour. The lenders need to be assured that you have enough capital to fall back on to be able to handle a new credit.

Collateral

Once again, your property, if you own any, can be shown as collateral when applying for a loan.

In case you are not able to meet debt repayments, the collateral will go under the possession of the bank which will sell it off to repay your loan.

Conditions

To assess your loan eligibility, the lender will scrutinise other conditions such the stability of employment. If you have been job hopping too often, instability will work against you.

A prospective lender will not be impressed by frequent jumps in your career.

Contributed by Creditvidya.com, an online educative tool to help customers stay on top of their credit

(This article was published on November 2, 2014)

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Can I use my self-directed IRA to take out a loan?

A:

A self-directed IRA is a versatile financial resource for retirement. Under some circumstances, you can use it to take out a loan. There are some restrictions to keep in mind, or the IRS may decide the account no longer qualifies for deferred taxation. The lenders who make loans to IRAs impose additional requirements.

The loan must be structured as non-recourse debt, in which the lender can seize only the collateral in the event of default. Because the lender is limited in recovery options, the interest rate may be higher than it would have been for a recourse loan. The down payment required is generally higher as well and comes from cash already in the IRA. Some cash, typically 10% of the loan, may be required to remain in the IRA as an emergency fund. Lenders also look at the property’s ability to pay its own monthly expenses, making it less likely to end up in default.

The loan cannot involve a disqualified person. This includes the account holder’s spouse, ancestors, lineal descendants or the spouses of any lineal descendants. For example: Fred holds a self-directed IRA. He wants to use the IRA to buy a small house for his daughter to live in. Someday, when his daughter’s family is too big for the house, he plans to move into it himself. He has enough cash to put down 40%, and the IRA generates enough income to pay the mortgage. This is a prohibited transaction for two reasons: he cannot use the IRA funds for either his disqualified-person daughter or his own future use. Fred can instead buy the house with its mortgage and rent to a non-disqualified person such as his brother-in-law.

An unfortunate consequence of a loan within a self-directed IRA is that an “unrelated business income tax” kicks in when a leveraged asset generates income that would have been taxable if not in an IRA. Be sure to check with an accountant about it.

[…]