Commercial lending: money becoming more available

Lenders may be beginning to open up as they see some signs of an economy that is stabilizing. Data released by the Mortgage Bankers Association (MBA) notes commercial and multifamily mortgage originations rose 12% in the fourth quarter year over year. Loan originations in the fourth quarter also were 15% higher than in the third quarter. see chart

life insurance companies posted 112% increase in loan originations in 4Q of 2009 compared with the fourth quarter of 2008, reports MBA. if you look to the chart, you can see relative stabilization in the last five quarters.

To be sure, commercial and multifamily originations remain at low levels. The Commercial/Multifamily Mortgage Bankers Originations Index, fell 79% over the last two years.The Commercial/Multifamily Mortgage Bankers Originations Index, for example, fell 79% over a two-year period ending in the third quarter of 2009.

And more to come: According to Foresight Analytics. For banks with $100 million in assets to $100 billion, commercial real estate is the largest part of their loan portfolio. Relatively little single-family. The regional banks are the sweet spot for bad commercial paper, with most small and midsized regional banks about to take the brunt of the storm.

Most of the problem loans were made between 2003 and 2007 and will be looking to refi or face possible default. They are expected to face the markets and the default rate should level off around 2011, Foresight Analytics
thinks we are about 60% through the loss process.

Money from large insurers and REITs seem to be picking up the slack as the banks still remain on the sidelines, preferring to rebuild their balance sheets rather than lend into a recession. Wherever the money is coming from, it is looking up

What it means for buyers and sellers of small properties and residential homes is that loan availability may be more likely from larger banks rather than the regionals as they brace
for the onslaught of bad paper expected to crest in late 2010 or 2011.

REsourced from www.yourpropertypath.com

New RSA Funding TV Commercial

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Look for our 30 second commercial spot on Dish Network. RSA Funding has started to advertise on Dish Network. The ad airs nationally and highlights RSA Funding’s services as a commercial mortgage broker and our website www.rsafunding.com

Update to website www.rsafunding.com

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Please take note that we have updated our website www.rsafunding.com by adding a link to this blog so that our followers can access information about commercial mortgage financing on both platforms.

Commercial construction financing

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As most builders and developers are acutely aware of there has been a lack of financing for large construction projects for some time now. I am not going to tell you that things have  turned a corner but there is financing available, even if it’s in drips and drabs. RSA Funding has a new source for construction financing on a limited basis.  Projects must be in the 25m+  range for new construction  of office buildings, multi family apartment complexes, and student housing.  Projects must be in major markets and the principles must be experienced.

For more information about this type of funding contact RSA Funding at rob@rsafunding.com. You can also call our offices at 888-598-FUND or visit us on the web at www.rsafunding.com

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Once I get the hang of this

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I am new to blogging.  I am going to try and integrate this blog with my site www.rsafunding.com.  I am a commercial mortgage broker and most of my posts will be about commercial real estate lending. I will probably also speak about business loans and construction financing ( or the lack thereof these days).

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