Category: Commercial Loans

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WHO HAS MONEY TO LEND, AND HOW DO YOU GET IT? WHY BANKS ARE PUCKERED

Today’s post is written by Michael Green, Commercial Loan Originator for Counsel Mortgage Group, LLC.   Commercial and multifamily mortgage bankers are expected to close $248 billion of loans backed by income-producing properties in 2020, a 59% decline from 2019’s record volume of $601 billion, the Mortgage Bankers Association (MBA) reported. Total multifamily lending alone,...

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NOT A SURPRISE, BUT WHAT TO DO?

  Today’s post is written by Michael Green, Commercial Loan Originator for Counsel Mortgage Group, LLC. The repeat CRE sales of $39.1 billion for the first 5 months of 2020 fell 24.2% from the same time a year earlier, according to the latest monthly CoStar Commercial Repeat Sale Indices. This is the first look at the...

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WHO’S ON FIRST? I DUN’NO … 3RD BASE!

Today’s post is written by Michael Green, Commercial Loan Originator for Counsel Mortgage Group, LLC. For those of you old enough to remember, that line is from the classic comedy dialog between Bud Abbot and Lou Costello first released in 1945. (This is available on You Tube. A link is offered for your entertainment …...

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COMMERCIAL MORTGAGE FINANCING IN THE POST-COVID-19 WORLD

    As I commented only a couple letters ago, pre-COVID-19 (paraphrased) …   “It’s very difficult to make predictions, especially about the future.”   Yogi Berra   Yet, here we are!   While we’re much more accurate reporting the past and extrapolating into the future, the recent data is largely irrelevant, and hence the...

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HOW’S THE COVID-19 CREDIT MARKETS?

Today’s post is written by Michael Green, Commercial Loan Originator for Counsel Mortgage Group, LLC.   So much happening so fast – COVID-19 … current and downstream effects! We’ll try to sift through the clutter and focus on those factors affecting our market over the next few months. As I review data accumulated since our...

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HOW SHOULD CRE INVESTORS PREPARE FOR THE NEXT DOWNTURN

  Today’s post is written by Michael Green, Commercial Loan Originator for Counsel Mortgage Group, LLC.   A recession is unlikely to hit this year, but that doesn’t mean that you shouldn’t start preparing. Experts say that this is the perfect time for investors to reevaluate portfolio performance to prepare for the next downturn—whenever it...

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BANKS ARE REVERTING TO OLD BAD HABITS

Today’s post is written by Michael Green, Commercial Loan Originator for Counsel Mortgage Group, LLC.   Banks could be slipping into old bad habits. Last year, as interest rates fell, banks started to loosen underwriting standards reminiscent of the last cycle—the kinds of missteps that ultimately led to the great recession. This includes high loan-to-value...

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COMMERCIAL REAL ESTATE (CRE) FINANCING & FED POLICY

Today’s post is written by Michael Green, Commercial Loan Originator for Counsel Mortgage Group, LLC. The Federal Reserve’s recent interest rate cuts have sent a surge of excitement through the commercial real estate (CRE) market. Fed influenced rates have returned to 2018 lows, however, the Fed’s interest rate reductions have little to do with conventional...

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VARIABLE RATE LOANS AND FED POLICY

Today’s post is written by Michael Green, Commercial Loan Originator for Counsel Mortgage Group, LLC.   Reminder from our last issue:   You’ve heard of ZIRP – zero interest rate policy – from 2008-2015. Now get ready for NIRP – negative interest rate policy. Currently about $16 trillion of sovereign bonds (all countries that issue),...

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WHY AN INVERTED YIELD CURVE IS GOOD FOR FINANCING CRE

The black economic cloud that is typically associated with an inverted yield curve does indeed have a silver lining. The correlating chart shows the U.S. Treasury rates for Jan. 2, 2018, the blue normal curve, and Aug. 13, 2019, the red inverted curve.  The inverted portion of the curve doesn’t turn positive vs. the 20-day...