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What is the process for price validation of a secondary market transaction for the legacy CMBS program?

April 26, 2017cmbs legacy market price process program Secondary transaction validation

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What is the process for price validation of a secondary market transaction for the legacy CMBS program?

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In order to validate the reasonableness of the price of any secondary market transaction, the price reflected on the sales confirmation for the secondary market transaction will be compared to various market data with respect to the existing market prices on the date of such transaction (trade date). The New York Fed will reject a loan request with respect to a legacy CMBS with a purchase price that does not reflect then-prevailing market prices.