04/05: CMBS - Conduit Market Improving - by CommercialLoanDirect.com
Category: Commercial Loans
Posted by: fmartin09
How do the capital markets compare from 2009 to 2010?
We are seeing some improvement in lending conditions during Q1 2010 from 2009. We believe the capital markets will continue to thaw at a slow pace during 2010. Lenders are open for business but underwriting continues to be conservative. Agency lenders (FNMA, Freddie, HUD) continue to be the lender of first choice for apartments. The Life Companies have taken a more active role in financing CRE in 2010 with LTVs typically 50-70% and rates between 6% and 7% fixed for 5 to 10 years. In addition, several new banks have entered the market with multi family family programs. LTV's as high as 75% for purchases, rates in the 5.75-6.75% range fixed with a 10/25 structure, full recourse. Conduits have entered the market cautiously (LTVs to 65%, Rates 6.26-7.5%, 5-20/25, non recourse). Small and medium size banks are mostly on the sidelines.
Commercial Loan Direct - Conduit Loans - CMBS - Nationwide
We are seeing some improvement in lending conditions during Q1 2010 from 2009. We believe the capital markets will continue to thaw at a slow pace during 2010. Lenders are open for business but underwriting continues to be conservative. Agency lenders (FNMA, Freddie, HUD) continue to be the lender of first choice for apartments. The Life Companies have taken a more active role in financing CRE in 2010 with LTVs typically 50-70% and rates between 6% and 7% fixed for 5 to 10 years. In addition, several new banks have entered the market with multi family family programs. LTV's as high as 75% for purchases, rates in the 5.75-6.75% range fixed with a 10/25 structure, full recourse. Conduits have entered the market cautiously (LTVs to 65%, Rates 6.26-7.5%, 5-20/25, non recourse). Small and medium size banks are mostly on the sidelines.
Commercial Loan Direct - Conduit Loans - CMBS - Nationwide
