The percentage of loans paying off on their balloon date hit a 12-month low last month, according to the just-released Trepp July 2012 Payoff Report. With only 26.3% of loans reaching their balloon date paid off, the July total was well under the 12-month average of 41.6%. (This number simply sums … [Read more...] about 8.7.12: July Payoff Report: Percentage of Loans Paying Off Hits New 12-Month Low
8.1.12: Second-Quarter Commercial/Multifamily Mortgage Originations Up 25% from a Year Ago
Washington, DC (July 31, 2012) – Commercial/multifamily mortgage origination volumes during the second quarter of 2012 were up 25% from second-quarter 2011 levels and up 39% from the first quarter of 2012, according to the Mortgage Bankers Association’s (MBA) Quarterly Survey of … [Read more...] about 8.1.12: Second-Quarter Commercial/Multifamily Mortgage Originations Up 25% from a Year Ago
7.26.12: CMBS Spreads Reverse Direction and Tighten
CMBS spreads reversed direction and tightened in the past two weeks after CBMS offerings from Morgan Stanley/Bank of America (BoA) and Wells Fargo/RBS priced at sequentially tighter spreads from peak levels seen in June when UBS/Barclays widened pricing of long-term super senior CMBS from its … [Read more...] about 7.26.12: CMBS Spreads Reverse Direction and Tighten
7.23.12: Tightening CMBS Spreads a Bonanza for Borrowers
CMBS spread tightening has resulted in a very favorable rate environment for CMBS conduit borrowers compared with a few weeks ago. “Benchmarking borrower rates is becoming a daily event,” commented Michael D. Sneden, Executive Vice President of ValueXpress. “Borrowing rates are once again solidly … [Read more...] about 7.23.12: Tightening CMBS Spreads a Bonanza for Borrowers
7.18.12: Small Business Capital and the Mark Feathers Saga
For lenders and intermediaries involved in SBA lending, the saga of Small Business Capital (SBC) and its CEO Mark Feathers provides more drama than the TV show "The Housewives of New Jersey." SBC is a licensed SBA lender located in Los Altos, CA. The firm holds 1 of 14 non-bank SBA 7(a) licenses … [Read more...] about 7.18.12: Small Business Capital and the Mark Feathers Saga
7.13.12: Trepp: Only 28% of Maturing 2007 CMBS Loans Paid Off in Full
According to Trepp, 2007 marked the year that commercial real estate values and the surrounding euphoria peaked. In the five years since, investors have spent countless nights fretting about the weak underwriting, optimistic revenue forecasts and inflated values tied to these loans. Prevailing … [Read more...] about 7.13.12: Trepp: Only 28% of Maturing 2007 CMBS Loans Paid Off in Full
7.9.12: Apparently Discounted Payoffs Are Okay for CMBS Conduit Loans
A detailed read of the 699-page prospectus for the CMBS issue from Jeffries LoanCore, Goldman Sachs and Citigroup (GSMS 12-GCJ7) that closed in June 2012 revealed some interesting facts regarding refinance loans in which the prior lender was being paid off at less than the full amount due. Pages … [Read more...] about 7.9.12: Apparently Discounted Payoffs Are Okay for CMBS Conduit Loans
7.3.12: Fracking Boosts Hotel Business
Hydraulic fracking has positively influenced hotel performance in areas with high fracking activity. One such area in the eastern portion of the United States is in the “Marcellus Shale” region, mostly found under the states of Pennsylvania, Ohio and West Virginia. These three states allow fracking, … [Read more...] about 7.3.12: Fracking Boosts Hotel Business
6.29.12: CMBS Spreads Widen Further, Affecting Loan Rates
After holding relatively steady in the face of rising CMBS spreads, conduit loan rates are starting to increase; spreads on the two most recent deals from JP Morgan/CIBC and UBS/Barclays widened at pricing. Prior to these deals, CMBS spread widening was offset by decreases in the swap rate that left … [Read more...] about 6.29.12: CMBS Spreads Widen Further, Affecting Loan Rates
6.22.12: Characteristics of Hotel Loans in CMBS 2.0
Jim Brett, senior loan underwriter, head closer, CMBS research analyst at ValueXpress and all-around good guy, recently prepared a study of the 222 hospitality loans that have been included in 35 CMBS issues since 2010. The effort discovered trends that can be utilized to advise our hospitality … [Read more...] about 6.22.12: Characteristics of Hotel Loans in CMBS 2.0