Archive for the ‘Bank Watch’ category

Refinancing available for loans maturing in the next 12-18 months with yield maintenance or defeasance.

July 14, 2010

Atlanta Ga- Tim Kinney the senior director of Mark One Capital just shared this information with me and I could not wait to share it with our clients.

Commercial Loans – Rates in The Low 5% Range

Rates are in the low 5% range for good quality commercial real estate with strong sponsorship.

  • Lender can forward rate lock up to 12 months in advance. No spread premium for the first 4 months. Average 7 basis points per month thereafter. This is a great option for loans maturing in the next 12-18 months with yield maintenance or defeasance.
  • Apartments – Loan-to-Value 70% – 75%, 30-year amortization, 10-year term, 5.25% rate
  • Prefer grocery anchored retail with strong sales. Loan-to-Value 70% – 75%, 30-year amortization, 10-year term, 5.25% rate. Other retail types also acceptable upon review.
  • Prefer Medical Office Buildings with a stable history. Loan-to-Value 70% – 75%, 30-year amortization, 10-year term, 5.25% rate.
  • Prefer Industrial Properties with strong tenants and a stable history. Loan-to-Value 70% – 75%%, 30-year amortization, 10-year term, 5.25% rate.
  • Prefer Owner-Occupied Properties with strong financials

Lower rates apply for lower leverage. This lender just rate locked their loan on an industrial property. 48% LTV with a 10 year term and 10 year amortization. The rate was below 4%!

If you have properties that fit the above criteria please contact me so that I can get Tim our in-house mortgage guru do a no obligation quote for you.

I am very happy to share this information with you.

Fannie Mae, Freddie Mac Continue to Lead Multifamily Lending; Delisting From NYSE Likely to Have Little Impact

June 19, 2010
  • Fannie Mae, Freddie Mac Continue to Lead Multifamily Lending;

    Fannie Mae, Freddie Mac Continue to Lead Multifamily Lending;

    Fannie Mae and Freddie Mac have provided much-needed liquidity to the apartment investment market through the credit crunch and recession, helping to offset the void left by the stagnant CMBS sector. Since the federal government took control of Fannie Mae and Freddie Mac in the third quarter of 2008, the amount of multifamily mortgage debt outstanding in the GSEs’ portfolios and federally related mortgage pools has increased by more than 10 percent, or approximately $33.5 billion. During the same period, other major sectors, including commercial banks, CMBS and life insurance companies, registered decreases in multifamily debt outstanding, curbing their exposure to real estate debt.

  • The government takeover of Fannie Mae and Freddie Mac came after the companies reported massive losses tied to their residential mortgage portfolios. Losses have continued to mount in the quarters since, and the government has provided $146 billion to aid the struggling GSEs, taking a massive toll on their values and shareholders. By June 15, the day before it was announced that both companies would voluntarily delist from the NYSE, Freddie Mac’s share price was only slightly greater than $1, and Fannie Mae’s had fallen below the same threshold. The companies remain registered with the SEC and will be traded on the over-the-counter market. The delisting should have little impact on their day-to-day operations but highlights the precarious positions of both firms.
  • While soft housing market conditions and related losses have battered Fannie Mae and Freddie Mac’s balance sheets, the GSEs’ multifamily portfolios have performed relatively well through the recession. As of the first quarter of 2010, Freddie Mac reported a multifamily delinquency rate of 0.24 percent, while Fannie Mae’s came in at just under 0.8 percent. These rates compare favorably to commercial mortgage performance trends in the banking and CMBS sector, where delinquency rates have reached 4.24 percent and 7.24 percent, respectively.
  • Despite problems surrounding Fannie Mae and Freddie Mac and the expectation of government-mandated changes in the quarters ahead, it remains probable the GSEs’ multifamily lending arms will operate with few changes. Apartment loan originations by the GSEs may continue at depressed levels this year when compared to activity in early 2009, however, reflecting a paucity of attractive deals in the marketplace rather than a shortage of available debt capital. Last year, GSE originations volume received a boost from apartment owners refinancing ahead of loan maturity to avoid further erosion in fundamentals and values.
  • The GSEs will remain selective, employing strict underwriting standards and shying away from riskier deals. At present, however, Fannie Mae and Freddie Mac continue to offer competitive terms and pricing on new multifamily loans. Loan-to-values range from 55 percent to 75 percent, with five-year loans pricing in the 4.5 percent to 5.0 percent range and 10-year rates averaging 5.25 percent to 5.75 percent.

United Security Bank of Sparta fails

November 14, 2009

Friday November 06, 2009 06:03 PM

Regulators seized United Security Bank of Sparta, Ga., Friday, making it the 21st failure of the year as Georgia’s banking crisis shows no sign of abating. Ameris Bank of Moultrie, Ga acquired United Security out of receivership. It is the second bank Ameris has acquired through a Federal Deposit Insurance …

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Bank Watch: Small Business Banks Floundering

November 14, 2009

Wednesday November 11, 2009 09:04 PM

Fitch Ratings has downgraded the long-term issuer default rating (IDR) of Central Pacific Bank, the bank subsidiary Central Pacific Financial, to ‘CCC’ from ‘B’. The downgrade ratings reflect the significant escalation of credit problems in both its California and Hawaii loan portfolios. Fitch said it expected the bank to endure increased credit stress in its Hawaii portfolio, as well as in its …

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