SBA 7(a) loan volumes continued to grow modestly, continuing a two-year growth pattern since 2012, according to a report by Charles H. Green, although fiscal 2014 (October 1, 2013 through September 30, 2014) was a year without noteworthy economic growth and lenders facing a number of changes in the … [Read more...] about 10.19.14: SBA 7(a) Loan Volume Rises in Fiscal Year 2014
10.17.14: Treasury and Swap Rates Go on a Wild Ride!
Everyone involved in the origination and underwriting of CMBS conduit loans or the creation and selling of CMBS securities backed by the loans is keenly aware of the swap market. The swap rate is integral to the interest rate charged CMBS conduit loan borrowers and a key factor in the profitability … [Read more...] about 10.17.14: Treasury and Swap Rates Go on a Wild Ride!
10.14.14: Will Declining Oil Prices Affect CMBS Conduit Loans in North Dakota?
After declining gradually for three months, oil prices suddenly tumbled almost $4 on October 14. It was the largest single-day decline in more than a year, and it brought the price of Brent crude, an international benchmark, to $85 per barrel. At its peak in June, a barrel cost $115. Oil … [Read more...] about 10.14.14: Will Declining Oil Prices Affect CMBS Conduit Loans in North Dakota?
10.6.14: Alleged Orlando Loan Originator Fraud Paralyzes USDA Secondary Market
Similar to the SBA 7(a) program, the U.S. Department of Agriculture (USDA) operates a loan guarantee program to promote business growth in rural areas of the country. The most popular program is the Business and Industry (B&I) Guaranteed Loan Program. The purpose of the B&I Guaranteed Loan … [Read more...] about 10.6.14: Alleged Orlando Loan Originator Fraud Paralyzes USDA Secondary Market
10.3.14: 2014 CMBS Volume on Pace to Exceed Last Year
After tracking slightly behind last year’s pace, an active third quarter allowed year-to-date CMBS issuance to exceed last year for the first time. According to Commercial Mortgage Alert, worldwide third-quarter CMBS issuance totaled $71.2 billion, up from $69.0 billion a year earlier. Based solely … [Read more...] about 10.3.14: 2014 CMBS Volume on Pace to Exceed Last Year
9.29.14: Franchise Expirations an Issue for CMBS Conduit Loans
The buyers of the most risky bonds in the CMBS structure (commonly referred to as the b-buyer) have the right to review all the loans in a CMBS pool in which they buy the bonds in the riskiest position. As part of the review, the b-buyer has the opportunity to “kick-out” of the pool or request price … [Read more...] about 9.29.14: Franchise Expirations an Issue for CMBS Conduit Loans
9.21.14: Update on Apartment Vacancy Rates
Reis reported that the apartment vacancy rate of 4.1% was unchanged in the second quarter of 2014. In the second quarter of 2013 (a year ago) the vacancy rate was 4.3%. And the rate peaked at 8.0% at the end of 2009. Vacancy was unchanged during the second quarter at 4.1%, a slight worsening from … [Read more...] about 9.21.14: Update on Apartment Vacancy Rates
9.19.14: It’s a Split Decision for CMBS
In an interesting twist to the structure of CMBS conduit offerings, the junior AAA-rated class of some recent offerings has split ratings for the first time. The junior AAA-rated class is the second most senior class of CMBS, a notch below the AAA-rated super-senior class, which provides 30% … [Read more...] about 9.19.14: It’s a Split Decision for CMBS
9.15.14: Judge Rejects Lawsuit Motion in AAHOA Rift
A federal court judge has ruled against individuals seeking to remove the entire Asian-American Hotel Owners Association (AAHOA) Board of Directors. In a recent ruling, Judge Harold Murphy rejected the plaintiffs’ motion citing long-standing law the showed the plaintiffs had not met the legal … [Read more...] about 9.15.14: Judge Rejects Lawsuit Motion in AAHOA Rift
9.10.14: Watch Your Alignment!
We recently were delayed in closing a number of hotel loans due to a recurring issue. Often hoteliers, primarily those involved in the construction of smaller (less than $10 million) limited-service hotels, obtain their franchise agreement well in advance of property construction. This secures a … [Read more...] about 9.10.14: Watch Your Alignment!
