Risk-retention and other regulations under the Dodd-Frank Act have led to subtle but significant changes in the way commercial properties are financed in the securitization market.

Large trophy office buildings, shopping malls and hotels are typically funded in this market because the exposure would be too big for any one bank or insurance company. Their size dictates that these mortgages either serve as collateral for a single bond offering or be split into multiple notes collateralizing two or more transactions on a pari passu, or equal-footing, basis.

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