Bridge Loans and CMBS Rates from Liberty SBF | See Us At The Next CRE ConferenceMay 1, 2014
Ratings agencies are getting tough on CMBS underwriting because they say that the loans are getting too big compared to values. That might end up pushing rates higher, according to an article in National Real Estate Investor magazine.
“Most conduit lenders only make loans that feature loan to value (LTV) ratios of 75 percent or less. That would normally leave lots of room between amount of the loan and the value of the property,” reported the site.
But that doesn’t stand up to stress tests done by the top ratings agencies and it has them worried, along with other factors like rising rates cutting into debit-service ratios and interest-only loans.
On the other hand, Reuters reported “U.S. CMBS loan defaults dropped for the fourth consecutive year and to their lowest level since 2008, according to Fitch Ratings in its annual U.S. CMBS loan default study.”
And also according to Reuters, the U.S. Economy stalled in Q1. (Though many attribute this to the weather.)
“The U.S. economy barely grew in the first quarter as exports tumbled and businesses accumulated stocks at the slowest pace in nearly a year, but activity already appears to be bouncing back,” the news service wrote.
Non-bank lenders are stepping in where banks dare not go in the CRE market, according to the Wall Street Journal.
The pool of lenders that includes REITS, investment funds and others filling a “void left by a banking sector that has grown averse to chancy bets: mortgages on riskier investments such as skyscraper construction, ailing malls and high-vacancy office buildings…”
Bridge Loan Rates
Floating rate loans starting as low at 5.99%
Commercial Mortgage-Backed Security Loans (CMBS) Rates
4.75% I 5 YEAR FIXED
5.25% I 10 YEAR FIXED
Call Liberty SBF at (877) 977-8028 or email us for more information on Bridge or CMBS loans.
Did You Hear Us Speak At Bisnow?
Liberty SBF is on the move. We were just at Bisnow in Phoenix and Austin talking on panels about commerical real estate and capital markets. We also were in New York City for the Retail Real Estate Summit and hopped over to Houston for RealShare. All in one week!
Did you miss us? Don’t worry. We’re heading to plenty of others. Here’s our schedule:
May 5 – 7: Meet the Money Hotel Conference, Los Angelas, CA.
May 6 – 8: Crittenden, San Diego, CA.
May 6 – 8: NAGGL, Bonita Springs,FL.
May 13 – 14: Bisnow BLIS (Hospitality), Washington D.C.
May 22: Bisnow BMAC West, Los Angelas, CA.
May 29: Realshare’s New Jersey Breakfast.
Call Liberty SBF at (877) 977-8028 or email us to meet up at the next conference or to talk about your next CRE loan.