This document discusses the challenges facing warehouse lenders today. It summarizes that:
1) Warehouse lending capacity fell dramatically after the housing crash but some larger companies are showing renewed interest.
2) It can be difficult for smaller lenders to find willing warehouse providers, as the process is lengthy and banks are cautious after the crisis.
3) Choosing the right person internally to handle the warehouse lending search is important, as an experienced person is needed who understands the business.
As a member of the INC 5000 I was interviewed on the federal government's policy for SBA loans, my own firm and how it has been affected by the market freeze. Furthermore, I am asked what President Obama should add to aid small business owners in this economic downturn all in the December 2008 edition of Inc.com
The leaders of finance are in our new issue of Private Money411, brought to you by the leaders of creative real estate investing, Realty411 magazine. Since 2007, Realty411 has delivered vital information to help investors grow their portfolio and expand their passive income streams. Download this important issue and study it today, and watch your financial future improve with the added knowledge you gain from it. To meet us in person in a city near you, visit: http://realty411expo.com or http://realty411guide.com/events
The document discusses the impacts of recent mortgage lending reforms on loan officers and borrowers. It summarizes that since 2009, three phases of reform - including changes to appraisal practices, disclosure requirements, and the Good Faith Estimate - have added 9 new forms to the loan process. This has increased compliance complexity, costs, and processing times. Borrowers are confused by the excessive information and often uninterested in details like fees paid by sellers. The reforms have unintentionally grown an industry around compliance at the expense of transparency and efficiency in lending.
A round-up of the latest UK economic news, including a reminder of the key announcements in George Osborne's Budget, inflation falling to 0%, the latest unemployment figures and David Cameron's comments about his re-election.
This document provides a summary of topics covered in Voltaire Financial's inaugural half-yearly bulletin, including:
- An overview of the changing residential development finance market, noting a shift away from large banks toward newer lenders like debt funds and peer-to-peer lenders.
- A guest article on rights of light and legal issues that can arise from infringing on these rights during redevelopment projects.
- Brief updates on taxation of annual tax on enveloped dwellings and trends in bridging loans.
- Case studies of recent projects completed by Voltaire Financial.
The document discusses trends in residential development lending, including less interest in super-prime projects, openness
1) GE Capital Retail Finance supports retailers' strategies of driving sales and managing credit costs through an integrated point-of-sale application offering private label and co-branded credit cards with instant credit. Discover understands and supports this flexible approach.
2) GE measures acquisition success through metrics like new accounts, approval rates, and same-day activation, but ultimately through helping retailers increase sales and credit penetration.
3) Maintaining customer acquisitions requires a compelling consumer value proposition and close alignment between GE and retail partners on mutual goals like in-store marketing and sales associate support.
Houston's Office Tenant Letter - February 2010Bob Lowery
- Lease audit requests have almost doubled in major cities in 2009 as tenants look for ways to reduce real estate expenses. Around 75% of audits uncover landlord overbillings or incorrect charges related to operating expenses.
- Common disputes involve landlords incorrectly including capital expenditures or management fees in operating expenses, which tenants partly pay. Audits also find landlords incorrectly calculating expense adjustments from declining occupancy.
- In response, some landlords are adding lease clauses that restrict tenants' rights to audit or hire certain types of auditors. However, estimates show auditors find modifications in over 90% of lease audits.
As a member of the INC 5000 I was interviewed on the federal government's policy for SBA loans, my own firm and how it has been affected by the market freeze. Furthermore, I am asked what President Obama should add to aid small business owners in this economic downturn all in the December 2008 edition of Inc.com
The leaders of finance are in our new issue of Private Money411, brought to you by the leaders of creative real estate investing, Realty411 magazine. Since 2007, Realty411 has delivered vital information to help investors grow their portfolio and expand their passive income streams. Download this important issue and study it today, and watch your financial future improve with the added knowledge you gain from it. To meet us in person in a city near you, visit: http://realty411expo.com or http://realty411guide.com/events
The document discusses the impacts of recent mortgage lending reforms on loan officers and borrowers. It summarizes that since 2009, three phases of reform - including changes to appraisal practices, disclosure requirements, and the Good Faith Estimate - have added 9 new forms to the loan process. This has increased compliance complexity, costs, and processing times. Borrowers are confused by the excessive information and often uninterested in details like fees paid by sellers. The reforms have unintentionally grown an industry around compliance at the expense of transparency and efficiency in lending.
A round-up of the latest UK economic news, including a reminder of the key announcements in George Osborne's Budget, inflation falling to 0%, the latest unemployment figures and David Cameron's comments about his re-election.
This document provides a summary of topics covered in Voltaire Financial's inaugural half-yearly bulletin, including:
- An overview of the changing residential development finance market, noting a shift away from large banks toward newer lenders like debt funds and peer-to-peer lenders.
- A guest article on rights of light and legal issues that can arise from infringing on these rights during redevelopment projects.
- Brief updates on taxation of annual tax on enveloped dwellings and trends in bridging loans.
- Case studies of recent projects completed by Voltaire Financial.
The document discusses trends in residential development lending, including less interest in super-prime projects, openness
1) GE Capital Retail Finance supports retailers' strategies of driving sales and managing credit costs through an integrated point-of-sale application offering private label and co-branded credit cards with instant credit. Discover understands and supports this flexible approach.
2) GE measures acquisition success through metrics like new accounts, approval rates, and same-day activation, but ultimately through helping retailers increase sales and credit penetration.
3) Maintaining customer acquisitions requires a compelling consumer value proposition and close alignment between GE and retail partners on mutual goals like in-store marketing and sales associate support.
Houston's Office Tenant Letter - February 2010Bob Lowery
- Lease audit requests have almost doubled in major cities in 2009 as tenants look for ways to reduce real estate expenses. Around 75% of audits uncover landlord overbillings or incorrect charges related to operating expenses.
- Common disputes involve landlords incorrectly including capital expenditures or management fees in operating expenses, which tenants partly pay. Audits also find landlords incorrectly calculating expense adjustments from declining occupancy.
- In response, some landlords are adding lease clauses that restrict tenants' rights to audit or hire certain types of auditors. However, estimates show auditors find modifications in over 90% of lease audits.
Bob Grant provides a summary of comments made by Jeffrey DeBoer to Congress about the struggling state of the commercial real estate industry. Key points include: refinancing capacity presents an ongoing risk to property values as $300-500B in commercial real estate loans will mature annually through 2020; capitalization rates have increased 250 basis points while rents have declined 20% depending on property type; the lack of transactions makes it hard to accurately value properties; and regulatory flexibility is needed to restructure loans and allow banks to extend performing loans based on cash flow to avoid foreclosures. Michigan in particular continues to struggle more than other states with industrial vacancies over 13% and expected retail vacancy increases of 2% and rent declines of 4%
Mercer Capital's Investment Management Industry Newsletter | Q1 2021 | Focus:...Mercer Capital
Mercer Capital’s Investment Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants.
Tricumen A Few Myths And Truths About Investment Banking 05 Jan12sebwalker
1) The document argues that only a small number of bankers from a few major investment banks were truly responsible for causing the financial crisis, namely the RMBS staff from Lehman Brothers, Bear Stearns, RBS, UBS, and Citigroup, totaling around 700 individuals.
2) It claims that the subprime mortgage business model was flawed and relying on continually rising house prices, and that this primarily led to the crisis, not other banking activities like prop trading or derivative use.
3) The document questions whether even banks claiming to do "God's work" are entirely faultless, referencing allegations that Goldman Sachs secretly bet against the housing market while publicly denying it.
The document summarizes the changes in shipping finance since the global financial crisis. Specifically:
- Shipping finance traditionally relied on loans secured by ship mortgages, with shipowners contributing 20-30% equity and lenders providing the remaining 70-80%.
- Shipping loans peaked at $130 billion in 2007 but have since collapsed as many shipping banks have failed or been nationalized. Rates and vessel prices have also declined sharply.
- Under new Basel III regulations, banks are shifting away from shipping loans which are now more limited, expensive, and selective for companies with strong balance sheets and creditworthiness.
- Smaller shipowners now face difficulties accessing traditional debt financing and should consider alternative partnerships for
This document advertises and provides information about an upcoming workshop called "Business Owner Strategy Sessions (B.O.S.S. TM) Resume!" on October 14th. The workshop will teach attendees how to improve their corporate retirement plan by decreasing costs by 25%, managing the plan in half the time, reducing personal taxes, and learning how to protect themselves from fiduciary liability. Attendance is limited to business owners only who must RSVP. The workshop is sponsored by the Ohio Employee Ownership Center and Beacon Hill Advisory, which provides wealth management services for business owners.
The document summarizes the President of the Rural Bankers Association of the Philippines' speech celebrating the association's 54th anniversary. It discusses how the rural banking industry in the Philippines can be divided into two groups - the "next generation" that is growing rapidly through innovation and expansion, and the "lost generation" that is in decline. It highlights positive steps being taken by progressive rural banks and the Bangko Sentral ng Pilipinas to modernize and strengthen risk management in the industry.
The document is an invitation and registration form for a winter networking mixer hosted by Club Venetian on February 17th from 8AM to Noon. It provides information on exhibitor tables, lunch options, and payment methods including check, credit card, or online registration. The form requires contact information, company details, payment options, and signature to complete the reservation by February 11th, with no cancellations or refunds after that date.
The LBN All About Events Chapter is hosting a summer networking event called Summer Sizzle II on June 7, 2011 at the Regency Manor & Banquet Center in Southfield, Michigan. Doors open at 5:30pm for networking and hors d'oeuvres, followed by a welcome at 6:45pm and a high-energy stage show performance called "Juice" starting at 7pm. The cost is $5 at the door and there will be a cash bar.
El documento describe las etapas del desarrollo del cáncer, conocido como carcinogénesis. Explica que el cáncer se produce cuando las células escapan de los mecanismos de control del crecimiento celular y se dividen de forma anormal, perdiendo su dependencia de factores de crecimiento. Identifica varios tipos de genes involucrados, como oncogenes que promueven la proliferación celular y genes supresores de tumores que la detienen. También describe las etapas de iniciación, promoción y progresión del cáncer
New entrants are providing warehouse lending facilities, but are being very cautious. Several community and regional banks have recently entered the warehouse lending space or are considering doing so, but they are charging historically high interest rates and fees. They are carefully re-underwriting loans and in some cases rejecting those that already have investors. While more credit is flowing back into warehouse lending, current players and new entrants remain cautious and are imposing tight restrictions and high standards on borrowers.
The document summarizes demographic data about LinkedIn users from 2008. It finds that the average LinkedIn user was 41 years old, had a household income of $109,703, and 80% had a college degree or higher. It also describes that LinkedIn users were likely to be business decision makers, executives, frequent travelers, and heavy spenders on technology, books, and other business-related purchases.
This document is an invitation to a networking event hosted by Metro Mastermind on April 8th, 2010 from 6-10pm at the Somerset Inn in Troy, Michigan. The event will provide coordinated networking opportunities focused on business partnerships, job opportunities, green careers and technologies, and personal growth. Guest speakers will discuss topics like creating breakthroughs, networking for wealth and power, job creation, using social media, and unblocking potential. A portion of the event proceeds will be donated to International Save the Children Foundation and Michigan Humane Society. Registration is $20 and includes full membership to the Metro Mastermind Alliance network.
The document discusses privacy settings on various social media platforms. It provides guidance on customizing privacy settings for things like tweets, photos, location information and contacts. It emphasizes restricting what is shared publicly to avoid oversharing personal information that could have educational, personal or professional consequences. Friends are encouraged to discuss the importance of understanding privacy settings and learning from experiences where privacy may have been compromised.
The document discusses how to navigate banking relationships during troubled economic times. It provides an overview of the shifts in the banking industry due to the financial crisis, including increased consolidation and losses from mortgage-backed securities and credit default swaps. It then offers advice on evaluating your bank's health, communicating proactively with your banker, understanding your loan terms and knowing when to seek other options.
Mercer Capital's Bank Watch | February 2022 | Acquire or Be Acquired (AOBA) 2...Mercer Capital
Brought to you by the Financial Institutions Team of Mercer Capital, this monthly newsletter is focused on bank activity in five U.S. regions. Bank Watch highlights various banking metrics, including public market indicators, M&A market indicators, and key indices of the top financial institutions, providing insight into financial institution valuation issues.
The survey found that more than a third of small and medium enterprises (SMEs) do not have enough reserves to weather a renewed economic downturn. Cash reserves are the strongest determinant of an SME's ability to obtain financing. Lenders now require solid collateral for loans, and SME business plans must convince lenders that funds will be used for capacity building rather than extending credit to customers. While some SMEs have no choice but to rely on unsuitable sources like personal credit cards, owners should try to avoid running for the exits and consider alternatives like easier supplier credit terms.
Euromoney - Global Insolvency & Restructuring Review 2013-14Anindya Roychowdhury
Three key points:
1) Kuwait was one of the first countries to introduce a stimulus package after the 2008 credit crunch, allocating $14 billion, but there has been limited success with only one case admitted under the bailout scheme and workouts being held up by regulatory hurdles.
2) Investment companies (ICs) in Kuwait, many of which were overleveraged, have struggled amid falling asset values and tightening regulations, with most ICs now headed towards default and in need of restructuring.
3) Restructurings have faced challenges due to reluctance among fragmented lenders to coordinate, cultural preferences for rescheduling over restructuring, and lack of specialized re
Despite the industry’s sometimes negative reputation, Asset Based Lending can be a preferred solution for borrowers who put in the effort to find the “right” lender, with appropriate collateral and loan structure.
One topic that a borrower should discuss with the lender before entering into an Asset Based Lending agreement is the structure of the ABL facility – and the borrower’s management team needs to read all the paperwork.
While traditional ABL is rather commoditized, some elements of the loan’s structure may be critical to the success of the partnership.
This document provides a summary of key changes in loan documentation that are creating opportunities for mid-market borrowers. Specifically, it discusses how historically rigid loan terms are giving way to more flexible "permitted baskets" and "grower baskets" that expand over time. It also explores how features like accordion facilities and reductions to mandatory cash sweeps are allowing borrowers greater flexibility to engage in strategic activities like acquisitions while maintaining debt levels. The document analyzes these shifts through several examples and suggests borrowers should capitalize on the increasingly borrower-friendly loan market conditions.
Bob Grant provides a summary of comments made by Jeffrey DeBoer to Congress about the struggling state of the commercial real estate industry. Key points include: refinancing capacity presents an ongoing risk to property values as $300-500B in commercial real estate loans will mature annually through 2020; capitalization rates have increased 250 basis points while rents have declined 20% depending on property type; the lack of transactions makes it hard to accurately value properties; and regulatory flexibility is needed to restructure loans and allow banks to extend performing loans based on cash flow to avoid foreclosures. Michigan in particular continues to struggle more than other states with industrial vacancies over 13% and expected retail vacancy increases of 2% and rent declines of 4%
Mercer Capital's Investment Management Industry Newsletter | Q1 2021 | Focus:...Mercer Capital
Mercer Capital’s Investment Management Industry newsletter is a quarterly publication providing perspective on valuation issues pertinent to asset managers, trust companies, and investment consultants.
Tricumen A Few Myths And Truths About Investment Banking 05 Jan12sebwalker
1) The document argues that only a small number of bankers from a few major investment banks were truly responsible for causing the financial crisis, namely the RMBS staff from Lehman Brothers, Bear Stearns, RBS, UBS, and Citigroup, totaling around 700 individuals.
2) It claims that the subprime mortgage business model was flawed and relying on continually rising house prices, and that this primarily led to the crisis, not other banking activities like prop trading or derivative use.
3) The document questions whether even banks claiming to do "God's work" are entirely faultless, referencing allegations that Goldman Sachs secretly bet against the housing market while publicly denying it.
The document summarizes the changes in shipping finance since the global financial crisis. Specifically:
- Shipping finance traditionally relied on loans secured by ship mortgages, with shipowners contributing 20-30% equity and lenders providing the remaining 70-80%.
- Shipping loans peaked at $130 billion in 2007 but have since collapsed as many shipping banks have failed or been nationalized. Rates and vessel prices have also declined sharply.
- Under new Basel III regulations, banks are shifting away from shipping loans which are now more limited, expensive, and selective for companies with strong balance sheets and creditworthiness.
- Smaller shipowners now face difficulties accessing traditional debt financing and should consider alternative partnerships for
This document advertises and provides information about an upcoming workshop called "Business Owner Strategy Sessions (B.O.S.S. TM) Resume!" on October 14th. The workshop will teach attendees how to improve their corporate retirement plan by decreasing costs by 25%, managing the plan in half the time, reducing personal taxes, and learning how to protect themselves from fiduciary liability. Attendance is limited to business owners only who must RSVP. The workshop is sponsored by the Ohio Employee Ownership Center and Beacon Hill Advisory, which provides wealth management services for business owners.
The document summarizes the President of the Rural Bankers Association of the Philippines' speech celebrating the association's 54th anniversary. It discusses how the rural banking industry in the Philippines can be divided into two groups - the "next generation" that is growing rapidly through innovation and expansion, and the "lost generation" that is in decline. It highlights positive steps being taken by progressive rural banks and the Bangko Sentral ng Pilipinas to modernize and strengthen risk management in the industry.
The document is an invitation and registration form for a winter networking mixer hosted by Club Venetian on February 17th from 8AM to Noon. It provides information on exhibitor tables, lunch options, and payment methods including check, credit card, or online registration. The form requires contact information, company details, payment options, and signature to complete the reservation by February 11th, with no cancellations or refunds after that date.
The LBN All About Events Chapter is hosting a summer networking event called Summer Sizzle II on June 7, 2011 at the Regency Manor & Banquet Center in Southfield, Michigan. Doors open at 5:30pm for networking and hors d'oeuvres, followed by a welcome at 6:45pm and a high-energy stage show performance called "Juice" starting at 7pm. The cost is $5 at the door and there will be a cash bar.
El documento describe las etapas del desarrollo del cáncer, conocido como carcinogénesis. Explica que el cáncer se produce cuando las células escapan de los mecanismos de control del crecimiento celular y se dividen de forma anormal, perdiendo su dependencia de factores de crecimiento. Identifica varios tipos de genes involucrados, como oncogenes que promueven la proliferación celular y genes supresores de tumores que la detienen. También describe las etapas de iniciación, promoción y progresión del cáncer
New entrants are providing warehouse lending facilities, but are being very cautious. Several community and regional banks have recently entered the warehouse lending space or are considering doing so, but they are charging historically high interest rates and fees. They are carefully re-underwriting loans and in some cases rejecting those that already have investors. While more credit is flowing back into warehouse lending, current players and new entrants remain cautious and are imposing tight restrictions and high standards on borrowers.
The document summarizes demographic data about LinkedIn users from 2008. It finds that the average LinkedIn user was 41 years old, had a household income of $109,703, and 80% had a college degree or higher. It also describes that LinkedIn users were likely to be business decision makers, executives, frequent travelers, and heavy spenders on technology, books, and other business-related purchases.
This document is an invitation to a networking event hosted by Metro Mastermind on April 8th, 2010 from 6-10pm at the Somerset Inn in Troy, Michigan. The event will provide coordinated networking opportunities focused on business partnerships, job opportunities, green careers and technologies, and personal growth. Guest speakers will discuss topics like creating breakthroughs, networking for wealth and power, job creation, using social media, and unblocking potential. A portion of the event proceeds will be donated to International Save the Children Foundation and Michigan Humane Society. Registration is $20 and includes full membership to the Metro Mastermind Alliance network.
The document discusses privacy settings on various social media platforms. It provides guidance on customizing privacy settings for things like tweets, photos, location information and contacts. It emphasizes restricting what is shared publicly to avoid oversharing personal information that could have educational, personal or professional consequences. Friends are encouraged to discuss the importance of understanding privacy settings and learning from experiences where privacy may have been compromised.
The document discusses how to navigate banking relationships during troubled economic times. It provides an overview of the shifts in the banking industry due to the financial crisis, including increased consolidation and losses from mortgage-backed securities and credit default swaps. It then offers advice on evaluating your bank's health, communicating proactively with your banker, understanding your loan terms and knowing when to seek other options.
Mercer Capital's Bank Watch | February 2022 | Acquire or Be Acquired (AOBA) 2...Mercer Capital
Brought to you by the Financial Institutions Team of Mercer Capital, this monthly newsletter is focused on bank activity in five U.S. regions. Bank Watch highlights various banking metrics, including public market indicators, M&A market indicators, and key indices of the top financial institutions, providing insight into financial institution valuation issues.
The survey found that more than a third of small and medium enterprises (SMEs) do not have enough reserves to weather a renewed economic downturn. Cash reserves are the strongest determinant of an SME's ability to obtain financing. Lenders now require solid collateral for loans, and SME business plans must convince lenders that funds will be used for capacity building rather than extending credit to customers. While some SMEs have no choice but to rely on unsuitable sources like personal credit cards, owners should try to avoid running for the exits and consider alternatives like easier supplier credit terms.
Euromoney - Global Insolvency & Restructuring Review 2013-14Anindya Roychowdhury
Three key points:
1) Kuwait was one of the first countries to introduce a stimulus package after the 2008 credit crunch, allocating $14 billion, but there has been limited success with only one case admitted under the bailout scheme and workouts being held up by regulatory hurdles.
2) Investment companies (ICs) in Kuwait, many of which were overleveraged, have struggled amid falling asset values and tightening regulations, with most ICs now headed towards default and in need of restructuring.
3) Restructurings have faced challenges due to reluctance among fragmented lenders to coordinate, cultural preferences for rescheduling over restructuring, and lack of specialized re
Despite the industry’s sometimes negative reputation, Asset Based Lending can be a preferred solution for borrowers who put in the effort to find the “right” lender, with appropriate collateral and loan structure.
One topic that a borrower should discuss with the lender before entering into an Asset Based Lending agreement is the structure of the ABL facility – and the borrower’s management team needs to read all the paperwork.
While traditional ABL is rather commoditized, some elements of the loan’s structure may be critical to the success of the partnership.
This document provides a summary of key changes in loan documentation that are creating opportunities for mid-market borrowers. Specifically, it discusses how historically rigid loan terms are giving way to more flexible "permitted baskets" and "grower baskets" that expand over time. It also explores how features like accordion facilities and reductions to mandatory cash sweeps are allowing borrowers greater flexibility to engage in strategic activities like acquisitions while maintaining debt levels. The document analyzes these shifts through several examples and suggests borrowers should capitalize on the increasingly borrower-friendly loan market conditions.
August 2009 The Credit Crunch Is Dead, Long Live The Credit Crunchgatelyw396
The credit crunch is not over despite government efforts - banks are still restricting credit for small businesses and individuals through actions like lowering credit limits, raising interest rates, and tightening loan standards. While large banks have rebounded thanks to government bailout money, they are not passing this relief to smaller customers, continuing to strangle the economy. The systemic issues that led to the crisis also remain unaddressed. Business owners are struggling with less access to credit and personal guarantees now required for business loans, leaving them wary of investing or hiring during this uncertain time.
The document summarizes a CNN article that outlines how refinancing a mortgage into a 15-year term at a lower interest rate can save $50,000 over 9 years compared to a 30-year term. It provides an example of how refinancing a $280,000 loan with 25 years remaining into a 15-year term at 4.375% interest could save $175,000 in interest versus keeping the 30-year term at 5.125% interest. It notes that while this strategy is effective, borrowers must be able to qualify and have sufficient equity. For those who cannot afford higher monthly payments, refinancing into a 20-year term could still save $44,000 over 10 years
The new California law makes short sales easier and safer for homeowners. It prohibits banks and lenders from pursuing homeowners for any losses from a short sale of their home. This provides important relief for one of the biggest problems borrowers faced with the short sale process. The law ensures that once a bank agrees to allow a home to be sold for less than what is owed, they cannot later pursue the former homeowner for the difference. This will allow many homeowners, through no fault of their own, to escape an underwater mortgage situation.
Get In The Drivers Seat Of Lending To Automobile Dealershipserikday
This article discusses key issues for lenders to consider when lending to automobile dealerships. It outlines the types of financing requests dealerships typically make, including floorplan financing, mortgages, and working capital loans. It also discusses important factors for lenders to evaluate such as the dealership ownership structure, franchise mix, processing days, advance rates and collateral requirements. The article emphasizes the importance of understanding the dealership's operations, financials, ownership, and managing credit risks when lending to automobile dealerships.
The document discusses how the current banking consolidation is leading to new trends in mergers and acquisitions (M&A). Specifically, it outlines how groups seeking to start new banks are instead acquiring small existing banks due to difficulties obtaining new bank charters from regulators. This is exemplified by Apollo Bancshares' acquisition of Union Credit Bank in Florida. Industry experts expect this type of transaction, where would-be founders purchase existing small banks, to increase and become the dominant form of M&A over the next year as new bank charters remain difficult to obtain.
ICSC Panel Members - Financing in Today’s Market Current Underwriting and the...Nicholas Maloof
The document is a panel discussion on current financing availability and underwriting for commercial real estate, especially retail properties. It contains responses from several panelists who are commercial lenders. They discuss:
- Credit remains available from banks, life insurance companies, and CMBS lenders, though terms vary between property types and quality. Retail financing can be tighter than other sectors.
- They are providing financing for a variety of retail property types including single tenant, multi-tenant, mixed-use. Grocery anchored centers are common.
- Loan-to-value ratios and equity requirements vary between lenders, but many will finance up to 75-80% LTV. Life insurers typically
This document discusses hard money loans, which are loans provided by private investors for real estate projects that do not qualify for traditional bank financing. It provides details on who hard money lenders are, what types of properties and borrowers they typically fund, and their application and underwriting process. Hard money lenders have more flexible standards than banks and make funding decisions based more on the borrower's experience and ability to sell the property for a profit within a few months than on credit scores. They typically require 50-65% loan-to-value and fund residential and commercial investment properties.
The document provides information about BBVA Compass, including:
1) It discusses the causes of the mortgage crisis and credit crunch, tracing it back to legislative changes in the 1970s that loosened mortgage requirements.
2) It provides an overview of BBVA Compass, noting it has over $65 billion in assets and 717 branches across the Sunbelt region.
3) It highlights BBVA Compass' strong capital and liquidity positions and conservative lending practices that position it well in the current economy.
Three former Moody's employees have formed a company called PF2 Securities Evaluations to assign values to collateralized debt obligations (CDOs) for clients. PF2 aims to provide fair value estimates for CDOs by considering their underlying cash flows, credit quality, and risk. They see demand increasing given the turmoil in credit markets which has made valuing CDOs difficult, as banks have scaled back these operations. PF2 hopes to value the growing number of CDOs in default.
In the February 3rd, 2009 edition of Blue Maumau, a franchise news sharing resource, I am given the opportunity to reflect my thoughts on the SBA loan program. At one point I am quoted saying, "SBA loans normally take off in a recession, but this time around SBA lending has not taken off, mainly because of other issues relating to banks which are outside the SBA's realm." I continue to state that franchising should be taking off in an economic downturn like this and continue to explain some of the possible causes with difficult franchising in these times.
The document discusses the bankruptcy of Energy Future Holdings, which underwent the largest leveraged buyout in history. It accumulated $40 billion in debt and has now filed for bankruptcy. There is currently a legal dispute over where the bankruptcy proceedings will take place. The bankruptcy could help clarify fraudulent transfer law, as creditors may argue the leveraged buyout constituted a fraudulent transfer. Leveraged buyouts involve taking on substantial debt, making the acquiring company vulnerable if it cannot service the debt. Careful target selection is important to mitigate bankruptcy risk.
The document discusses the origins of the financial crisis. It identifies several key factors:
1) A housing price bubble formed from the mid-1990s to 2006 as home prices increased each year, outpacing household income growth and moving out of line with economic fundamentals. This fueled expectations of continued price increases.
2) Subprime lending expanded rapidly after 2000, helped inflate the housing bubble, and enabled many new subprime borrowers to access credit. Innovative mortgage products like ARMs contributed.
3) Financial innovations like securitization, CDOs, and credit default swaps masked risk and facilitated the subprime lending boom by channeling funds to subprime mortgages. However
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
1. Wa re h o u se L e n d i n g
Finding a Good
Match BY
BOB
RUBIN
Warehouse lines are tricky business
today. With banks generally gun-shy
about the mortgage business, smaller
lenders need some pointers to help
find a willing provider.
REPRINT ED WITH PERMISSION FROM THE MORTGAGE BANKERS ASSOCIATIO N (MBA)
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2. F
rom lush green to desert sand, the warehouse lending
topography in recent years has been drained of liquidity. It
even got to a point where those seeking warehouse funds
were best advised to have with them someone who knew
how to find the fertile fields of funding. And that proved any-
thing but easy when so many spigots had been turned off to
the frontline originator. In the aftermath of the housing
I
market crash, warehouse capacity fell from around $200 bil-
lion in 2007 to around $20 billion in 2008, according to
MortgageDaily.com—an unbelievable 90 percent drop. And
although things have improved more recently, that warehouse capacity num-
ber remains low, as some smaller warehouse lenders are essentially maxed
out with little interest in expansion due to their asset and capital size. I
New financial reform laws are only making it harder on the wholesale mort-
gage market, as are recent restrictions on non-federally insured depository
institutions and loan officer compensation. A lot of brokers who had been
active with wholesalers will go away because of the new compensation
rules. Indeed, figures released in late summer by National Mortgage News
revealed that loans originated through mortgage brokers fell 51 percent in
the second quarter of this year, accounting for just 10.5 percent of origina-
tions nationwide—a new low. IMany of the remaining brokers will grav-
itate to working for national banks because of new stricter licensing require-
ments. The weaker brokers who don’t have a tangible net worth of at least
$1 million are likely to simply disappear. Without a doubt, it has become
I
much harder to run a wholesale lending operation today—especially
in accordance with new Federal Reserve rules that limit loan originator
compensation, combined with a prohibition on yield-spread premiums
carried in the Dodd-Frank Wall Street Reform and Consumer Protection Act.
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3. Hopeful signs they would like to sponsor; however, FHA lenders will
Of course, even the darkest cloud can have a silver lining, assume responsibility for their sponsored TPOs, satisfy-
and some larger companies are showing signs of interest ing FHA requirements regarding loan origination and
in warehouse lending again. Bank of America, Charlotte, processing.
North Carolina, reported its warehouse lending rose in the Originators who are doing all of the right things can
second quarter to $15 billion in commitment volume. find themselves left high and dry by their warehouse
Even though originations are trending downward—the lenders. Those providers who remain are sticklers on
Mortgage Bankers Association (MBA) projects $1.4 trillion what they want, which includes retail operations (not
in 2010 and $996 billion in 2011—originators are feeling brokerages), at least three years in business, enough per-
the pinch of having their warehouse funding delivery sonal wealth of the owners so a guarantee means some-
times stretched out, which deepens the need for additional thing. A company also should be profitable and get high
lines even with dropping volumes. marks from the auditing team.
The first signs of this shift occurred almost a year
ago, when GMAC targeted an expansion of its ware- Difficult time locating the right bank
house lending operations. This was followed by similar Finding a new warehouse lender is complicated further by
moves by BB&T Corporation, Citigroup Inc., JPMorgan the fact that many commercial
Chase & Co. and Sterling Warehouse Lending. In addi- banks are not keen on having any-
tion, Freddie Mac launched a pilot program to support Some larger thing to do with the mortgage busi-
warehouse lending, while MetLife announced in Sep- ness right now. Even mortgage
tember that it was entering the mortgage warehouse companies are bankers that have very solid finan-
business. cials and seek more warehouse facil-
All are hopeful signs, but they mask the fact that showing signs ities have a difficult time locating
while large banks offer warehouse lines to originators t h e r i g h t b a n k . I t ’ s a c a t ch - 2 2 ,
having a net worth of more than $5 million, the vast of interest in because when you do business for a
majority of mortgage originators with limited, if any, long time with one banking institu-
financial sources are not invited to the party. warehouse tion, you tend not to have too many
One lender that had done business for 14 years with its fallback relationships available.
wholesale funder, never experiencing a loss in all that lending again. As a result, mortgage bankers are
time, was advised after two strong years in 2008 and 2009 scouring the landscape in search of
that its financing was being discontinued, echoing similar new warehouse lending sources, but
moves across today’s constricted funding landscape. this can be a tough assignment.
Even when money is available, it can take nine While they may develop a list of names, the single biggest
months or more of agonizing negotiations for these mistake that my company sees is putting the wrong
warehouse relationships to develop—if they do at all. It’s person in charge of finding a new warehouse lender.
a tortuous process with long checklists and no term Ideally, the best scout would be the company owner,
sheets provided upfront. but he or she usually doesn’t have the time to do this and
Warehouse providers want to scour internal files with typically delegates the job to someone else—in which
no assurances they will provide any financing in the case the owner still should closely monitor the situation
end. It’s not unusual for the large institutions to set a and know exactly what’s going on. The designee, obvi-
high FICO® floor, cherry-picking loans at the lowest pos- ously, must be someone who:
sible price. In contrast, local banks are becoming great I is responsible and accountable;
allies—especially those with no prior mortgage plat- I knows what’s going on inside the company and in
form; they offer an opportunity for collaborative growth. the industry at large;
I is passionate about the company;
Some can’t make the cut I pays strict attention to details; and
For businesses trying to expand, the need for additional I responds promptly to requests from prospective
warehouse facilities to meet their production levels is frus- warehouse providers.
trated by warehouse providers disappearing and leaving Oftentimes, warehouse lenders can tell how well man-
their mortgage banker clients in the lurch. Some mortgage aged a company applying for a line is in terms of its
bankers just can’t make the cut. response time for producing requested documentation.
The Federal Housing Administration (FHA) has been Too often, a junior person is put in charge of the ware-
stepping into the breach to fund independent mortgage house lender search. But this person usually doesn’t
bankers. Now, though, the agency is increasing its net- know what questions to ask. It is not uncommon for a
worth requirements for lenders to $1 million, under a less-experienced in-house person to fail to find the bank
final rule issued this past spring. For FHA-approved with the right fit.
small-business lenders, the net-worth requirement will There are several characteristics mortgage bankers
be $500,000. However, third-party originators (TPOs) need to look for in a warehouse lender, including:
will no longer receive independent FHA eligibility I an aggressive appetite for issuing new warehouse
approval. facilities;
The final rule will relieve FHA lenders of the respon- I an interest in doing larger lines;
sibility to obtain prior FHA approval of the TPOs that I the ability to approve and close lines quickly;
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4. I a total understanding of the residential mortgage have adequate capital to survive and grow.
business; and Warehouse lenders want to see all key financial state-
I the ability to analyze, inspect and do a thorough due ments for the past three years; copies of state licenses,
diligence within a short period of time. bonds and insurance; a report showing delinquencies,
advances, escrow balances and recent valuations; copies
Rolling out the red carpet of report cards from companies you have sold loans to;
Some warehouse banks are perfect fits for front-line and a report showing loan buyback demands that have
lenders. They know just what they want. If they see a com- not been settled—as well as those that have.
pany they want to do business with, they will roll out the Once burned, twice shy of mortgage fraud, commercial
red carpet and close a transaction within 30 days. banks want to be absolutely sure they know who they’re
In one recent transaction my company was involved dealing with. So, the mortgage banker applicant must be
with for a lender, a first-choice warehouse provider was truthful and prepared to respond to any additional ques-
called and a conference call was arranged. Four days tions and requests from the warehouse lender.
after the meeting, the warehouse provider received an
overnight package from the mortgage banker with a very New interest from small banks
complete application and all the required attachments. Despite the ongoing problems in the mortgage business
Five days after that, the chairman of the bank and the and in banking at large, warehouse lending can be a very
president of its warehouse division met with my clients. profitable business for commercial banks. In particular,
At the end of the meeting, the chairman called a special many very small banks, which are having trouble making
meeting of his board of directors to approve a $100 mil- money elsewhere, are now interested in this business. At
lion mortgage warehouse facility, which has since been close to zero percent, they have low funding costs and can
increased to $200 million. The line was closed in just lend out to a mortgage banker at about 6 percent, plus
three weeks from the date of receiving the application. earn fee income. A small bank can earn more than
Now, that’s the way to do business. $500,000 a year from this business.
Just as important as finding the right warehouse Every day, mortgage bankers face the prospect of new
lender is knowing which ones to avoid. This knowledge laws, rules and requirements that can put them out of
comes from experience and taking the pulse of the mar- business or drastically affect the way they do business.
ket every day. Power struggles between the Securities and Exchange
There are some banks that are simply time-wasters; Commission (SEC) and the FDIC, and new financial
frankly, they seem to make their money by collecting reform laws seem to be directed by those impervious to
outrageous application fees. Many banks want deposits their negative implications to the availability and cost of
upfront. There is one bank that issues lots of commit- mortgage financing to the public.
ments and charges a $10,000 application fee for each. Trade organizations and special interests are pushing
Yet, nobody can talk to the president of its warehouse back with education on this, but the hard direction from
division and key people do not return phone calls. This the Obama administration seems to be there is no room
institution was reported to the Federal Deposit Insurance for compromise when it comes to financial regulatory
Corporation (FDIC), though we never heard of anything reform.
that happened as a result. Given these industry developments, it makes it all the
Sad to say, too many bank personnel just don’t under- more vital to know how to get a warehouse facility—
stand customer service. Some of these people simply which banks to avoid and which to contact based on suc-
enjoy making their clients jump through hoops. They cess and experience.
seem to love saying “no.” Finally, beware of making a decision based strictly on
Once the key warehouse lender has been identified, price. Some of the lowest-priced warehouse providers
the mortgage banker must be prepared to promptly pro- insist that all or most of their clients’ production go to
duce the required financial information. The trickiest that particular warehouse provider. The mortgage
task can be assembling fresh, year-to-date financial state- banker is not assured that the bank’s pricing will even be
ments. This can be a major challenge at the very smallest in line with other pricing in the market.
of companies, many of which are not well organized. Because of this captive nature, the mortgage banker
Probably the most important document that should be could find itself in a situation that is very costly.
included is an executive summary of the company. Many Between being out of compliance and paying extremely
do not have these available or may not know how to pre- large pair-off fees, it is a no-win situation even when con-
pare this most important document. sidering the low rate and fees of the warehouse bank.
So, what does it all mean? Be careful and choose the
Looking at their QC process right bank that will not suddenly deliver (unpleasant)
It is important to look at the mortgage lender’s executive surprises. MIB
summary and tie in projections from actual results. Anoth-
er important step is to look at the lender’s quality-control Bob Rubin is principal of The Business Loan Connection LLC, Southfield,
(QC) process to see if it, in fact, is something that is Michigan, a financial services firm that specializes in matching mortgage
designed for that particular mortgage lender. In short, bankers with well-run banks that issue mortgage warehouse facilities. He has
warehouse providers are seeking mortgage bankers that more than 35 years of experience in the real estate and mortgage finance
know what they are doing—those that are profitable and business. He can be reached at bobr@tblnc.com.
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