Borrowers find security in securities.

Borrowers rated commercial mortgage backed securities the most competitive funding source for interest rates and loan proceeds, according to a recent borrower survey commissioned by Commercial Mortgage Securities Association and Mortgage Bankers Association (MBA).

"The survey findings show that borrowers recognize the substantial benefits the CMBS industry is able to provide them," said CMSA President Margie Custis. "It also indicates long-term challenges that the industry needs to address to ensure that we continue to be a viable source of funding for the borrowing community."

Last year alone, more than $165 billion in CMBS was issued in the United States. Now the second-largest source of capital funding for the commercial real estate industry, the total outstanding bond issuance is $600 billion. Borrowers biggest concern is the industry's inability to modify" loan based on what is best for the real estate and post closing servicing issues.