CMBS: Back in Business?

Bob Randklev — Thu, 10 Dec 2009 14:17:08 +0000

CoStar Group reported that Commercial Mortgage Backed Securities (CMBS) may be back in business. CMBS was similar to the residential secondary mortgage markets. Loans were group together and sold to investors and this was a large part of what drove the housing boom from 2000-2007 but this is also large part of the recession of 2007 to now.

I’m over-simplifying but if there’s no investors to buy the loans, banks will be less likely to make the loans, as investors come back to buying mortgages, banks will make more loans and more property sales will take place! CMBS is good for the future of commercial real estate!

Read the full article here: Investors Showing an Appetite for Bonds Backed Even by the Weakest Real Estate Sector and No Government Support

If you have any comments or question please let us know.

http://MulitiFamilyAssociates.com

MultiFamily Financing Declines

Bob Randklev — Fri, 03 Apr 2009 23:57:00 +0000

Here is an interesting article from National Real Estate Investor magazine:

Commercial/Multifamily Mortgage Originations Plunge 80% from Fourth Quarter 2007

By Denise Kalette

A new report from the Mortgage Bankers Association (MBA) shows a dramatic drop in commercial and multifamily mortgage loan originations in the fourth quarter of 2008. Originations fell 80% from the same period of 2007, a decline noted across all property types and investor groups.
"Commercial and multifamily mortgage lending slowed to a trickle in the fourth quarter," said Jamie Woodwell, vice president of commercial real estate research at MBA, in a statement. "Originations for all of 2008 were down approximately 60% from 2007 levels. Between the worsening economy and the continued credit crunch, lenders are extremely cautious about lending and borrowers are likely to hold onto the assets and the loans they already have."

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CMBS: Back in Business?

MultiFamily Financing Declines