Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Thursday, 09 November 2017

Loan Demand Jumps in 3Q by 21 Percent from Last Year

Loan demand has increased substantially during the second half of the year, with the Mortgage Bankers Association reporting that originations during the third quarter were 21 percent higher than they were a year ago and 8 percent higher than the second quarter. Lending volumes are typically correlated with property sales. Property owners are opting to refinance instead of sell.

Commercial Real Estate Direct Staff Report

Loan demand has increased substantially during the second half of the year, with the Mortgage Bankers Association reporting that originations during the third quarter were 21 percent higher than they were a year ago and 8 percent higher than the second quarter.

Reports from lenders tell the story. Starwood Property Trust, for instance, noted that it had originated $937 million of loans during the third quarter and said fourth-quarter volumes are running at a clip greater than it's seen in more than three years. And it says it hasn't gotten more aggressive. Instead, it said the leverage ratio for its loans has declined over the years, to 62.8 percent from 65.5 percent.

KKR Real Estate Finance Trust, meanwhile, originated $629 billion in the latest quarter, amounting to more than half its volume for the year. And Ladder Capital Corp. originated $630 million of loans, which amounts to nearly a quarter of its loan book, and an additional $589 million of loans last month alone.

CMBS lenders have led the charge, increasing their lending volumes by 42 percent since last year and 4 percent since the second quarter, according to the MBA's survey. A...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2016
Investment Bank #Deals Vol$mln MktShr%
JPMorgan Securities 14.94 10,350.16 15.14
Deutsche Bank 14.21 9,926.60 14.52
Wells Fargo Securities 13.36 9,513.96 13.92
Citigroup 10.87 8,061.79 11.80
Goldman Sachs 10.05 7,563.72 11.07

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2016
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 133.67 8,670.33 13.34
Goldman Sachs 156.20 7,418.37 11.41
Deutsche Bank 178.17 6,510.75 10.02
Citigroup 184.41 5,512.20 8.48
Morgan Stanley 113.18 4,130.53 6.35

 

 

 

REITCafe

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