The
recent news from The Federal Reserve reminds me of a saying by Buzz Lightyear.
You remember ol' Buzz, the toy astronaut, in the movie series Toy Story. Every
time he lept from a piece of furniture, he would proclaim with great
fanfare, "To infinity and beyond!!"
MCF Market Watch
Welcome!
In the interest of keeping our clientele educated and well-informed in a trying economy, MCF issues bi-weekly market assessments.
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Saturday, September 29, 2012
QE3 - To Infinity and Beyond!
Friday, September 21, 2012
Be Proactive and Anticipate Financing Road Blocks Before they Happen
In the
past, a borrower was typically asked to provide a simple financial statement
with a credit check, and that was the extent of the credit items required. Ah, the good old days. In today’s environment, lenders have upped
their borrower documentation considerably requiring an extensive amount of
information on the borrower.
I’m
continually surprised by most borrowers who don’t know the necessary
documentation they need to provide in order to get a lender interested in
them. They could avoid many of their financing
problems if they anticipated the financing road blocks before they happen. Shown below are seven of the more common
examples of issues to watch out for:
Monday, September 3, 2012
CRE Delinquency Rates Continue to Plummet
The commercial real estate market is getting better. What we've sensed was happening has numbers to prove our thinking. There are two very insightful charts by SNL Financial that show the slow but steady decline in delinquency rates over time on commercial real estate loans.
U.S. commercial banks reported a delinquency rate of 5.28% on CRE loans compared to a high of 10.76% nine quarters ago. Oregon has fared even better with a delinquency rate of only 3.04% on CRE loans.
The asset quality of CRE loans has been improving at a faster pace than one-to-four-unit plexes (considered residential). However, residential loan delinquencies have also declined by about 200 basis points to 12.66% as of the end of the 2nd quarter of this year.
Source: CRE delinquencies continue to plummet; by Harish Mali and Robert Clark, SNL Financial, August 29, 2012