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MarketBeat Archive

Small-Balance Borrowers Go Long With Life Cos.

Property owners aiming to lock in today's attractive rates over long-term holds are suddenly finding plenty of interest among more aggressive life company lenders.Read More

Lending Execs At A Loss To Explain Q2 Small-Balance Originations Drop

Boxwood Means reports a sizable decline in second-quarter small-balance originations - but it's unclear whether higher rates alone are to blame.Read More

Small-Balance Lenders 'Relatively Oblivious' To Rate Hike

A veteran finance executive sees minimal impact of the general interest-rate hike on quotes from most balance-sheet small-balance lenders - so far.Read More

CU Small-Balance Lending Posting Solid Growth

Many credit unions are teaming up on participation CRE loans, with five-year fixed deals comprising the sector’s sweet spot.Read More

Buyers Beware: Bank Branches Going Bye-Bye

Given trends toward banking online and by mobile device, along with likely consolidation in the sector ahead, America will likely see far fewer bank branches as the decade progresses. Read More

NPL Dispositions Slowdown? Not Really

Well-heeled fund managers have shifted NPL acquisition targets toward the small-balance sector - and even portfolios of micro-balance assets, according to one industry expert. Read More

A10 Capital Raise Positions Small-Balance Lender for Growth

Direct balance-sheet lender A10 Capital, one of few lenders funding NPL purchases, has just raised $100 million in equity and an equal amount of debt financing. Target borrowers are entrepreneurs pursuing ‘transitional’ assets including non-performing small-balance loans. Read More

Bigger Banks, Longer Terms

As more mid-sized and larger banks jump into small-balance lending, borrowers see more opportunities to secure the seven- and 10-year transactions community banks won't fund. Read More

Banks, CMBS Trusts Step Up Small-Balance NPL Dispositions

Factors including year-end financial reporting, slow-to-recover fundamentals and persistent defaults are combining to generate a spurt of distressed-asset dispositions. And as loan-sale advisors point out, local experts targeting small-balance notes are the primary beneficiaries. Read More

Life Companies Expanding Small-Balance Offerings

Life insurers large and small are competing in the small-balance arena with modest recourse, term/amortization flexibility - and competitive rates. Read More

Former Beal Bank Staffers Start Small-Balance Debt Operation

A new Behringer Harvard outfit aims to raise investment funds targeting performing and non-performing recourse CRE and C&I loans from community and regional banks. The CEO anticipates unlevered IRRs of 15 to 20 percent. Read More

CRE Exposure Hinders Community Bank Lending - But Not Big Banks?

Surprise: Community banks' CRE portfolios are actually performing better than their larger bank counterparts. So why aren't smaller banks lending more freely? Chalk it up to reduced access to capital and, perhaps ironically, less regulatory scrutiny. Read More

Life Cos. Looking To Lend Against Small-Cap Retail

With growing confidence in the economy's modest recovery, life insurers have once again become an important lifeline for small shopping center owners and buyers. Their penchant for long loan terms and non-recourse structures more than make up for limited leverage. Read More

CU Execs Hopeful of MBL Cap Hike

A proposed doubling of the credit union business lending cap didn't make it to Obama's desk last year. A just-reintroduced Senate bill renews hope that these active small-balance CRE lenders can grow even busier. Read More

Epitaph to the Credit Crunch: Small CRE Business Lending Tumbled

Just as the green shoots of CRE lending emerge from the cyclical rubble, a new study quantifies the sizable impact of the recent recession on small CRE and C&I business lending by banks - and validates why Main Street business owners were grumbling for so long. Read More

More Science, Less Art with Revised Appraisal Guidelines: A Postscript

We think the greater emphasis on asset quality reflected in the updated Guidelines offers renewed hope for more transparency through the credit cycle. Read More

Banking Regulators Stress Monitoring under New Appraisal and Evaluation Guidelines

Given the real estate-rooted disaster America's lenders have witnessed over what feels like a half-decade, the new collateral appraisal and evaluation rules that mostly go into effect on April Fools Day for federally regulated institutions are, well, no laughing matter. Read More

FDIC Listens: Will Offer Smaller Regional Pools of Small Loans

The FDIC's structured transaction program is about to expand from mostly 10-figure loan pools to regional offerings of $200 million or less. This will presumably generate interest from small-balance specialists partnering with capital sources. Read More

Small-Cap Retail Deals Signal Increased Capital Availability

Regional banks in particular, along with life companies, are again actively financing small-balance retail properties. However underwriting remains conservative - meaning that proceeds in some cases might not match outstanding refi balances. Read More

Mortgage Broker Fears for Peers' Future

A conversation with veteran small-balance mortgage broker Marcia Upton reveals concerns about market challenges, along with skepticism about a full-fledged capital markets recovery. Read More

Lest Bankers Forget: Extensions of 'Threatened' Mortgages Trigger Appraisals

As banks are re-discovering all too often, FIRREA requires new collateral appraisals when high-LTV 'threatened' mortgages get extended, refinanced or face foreclosure. The fee appraisals, and associated internal evaluations and possibly outside reviews reflect necessary bank costs during this phase of the real estate cycle. Read More

Fannie Small-Balance Program Thrives

For borrowers and apartment properties that qualify, Fannie Mae's small loan program offers an attractive combination of low pricing, high leverage and flexible terms. Read More

Georgia Banks Pushing Atlanta-Area REO Sales

Small-balance REO trading is starting to spike in metro Atlanta this year, as both investors and users warm up to earnest selling of foreclosed properties by Georgia banks. Read More

Lender Competition Resurfaces as Liquidity Improves

With traditional lenders getting more active and new ones jumping in, interest rate spreads on small-balance commercial mortgages have narrowed by 100 basis points or more in recent months, and loan-to-value ratios have increased by five percent.
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Fledgling State-Owned Bank Movement Could Muster Needed CRE Credit

Public officials in several states are proposing state-owned banks after witnessing the critical lending role and financial success of Bank of North Dakota. Such banks could be attractive resources for small-balance investors - if they get off the ground. Read More

Proposed Legislation Could Boost Credit Unions' Role in Small-Balance CRE Finance

If proposed federal legislation becomes law, credit unions active in CRE finance can plow additional capital into the debt-starved, small commercial property market. In so doing, credit unions aim to become more formidable players in the small-balance commercial space. Read More

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