Commercial Mortgage-backed Securities, also known as Conduit Loans, are a type of commercial real estate loan that is secured by a first-position mortgage on a commercial property. These loans are offered by Conduit Lenders, commercial and investment banks, or syndicates of banks. A CMBS Loan has a fixed interest rate (which may or may not include an interest-only period) and is typically amortized over 5, 7, or 10 years (with 15 years as a rare exception) and 25-30-year, with a balloon payment due at the end of the term. Because the loans are not held on the Conduit Lender’s balance sheet, CMBS Loans are a great way for these lenders to provide an additional loan product to Borrowers while at the same time maintaining their liquidity position. Because of the more flexible underwriting guidelines, CMBS Loans also allow CRE investors that cannot usually meet stringent conventional liquidity and net worth guidelines to be able to invest in commercial real estate.