Two reasons why CRE is the next domino to fall
Posted on September 1, 2009 at 6:44 am
The first, say the Journal’s Lingling Wei and Peter Grant, is bad underwriting — the commercial equivalent of making mortgages to people who couldn’t afford them — that already is making its way through the system. The second factor will take a little longer to fully manifest itself.
By the end of 2012, some $153 billion in loans that make up CMBS are coming due, and close to $100 billion of that will face difficulty getting refinanced, according to Deutsche Bank. Even though the cash flows of these properties are enough to pay interest and principal on the debt, their values have fallen so far that borrowers won’t be able to extend existing mortgages or replace them with new debt. That means losses not only to the property owners but also to those who bought CMBS — including hedge funds, pension funds, mutual funds and other financial institutions — thus exacerbating the economic downturn.
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Sitel gets into the loan mod business
Posted on August 25, 2009 at 9:43 amCall center operator Sitel says it has signed a contract with a loan servicing company to handle up to 450,000 phone calls a month from borrowers looking to refinance or modify their mortgages. The deal means Nashville-based Sitel will hire several hundred people.
“Sitel has a deep and rich history in the credit services market, particularly when it comes to the minutia of lender-borrower relationships,” said Don Berryman, global chief sales & marketing officer, Sitel. “One of the primary challenges facing lenders is that modifications will not work for every type of borrower, and they face a significant uphill battle when it comes to sifting through these customers. Sitel’s certified agents can quickly isolate the key information required to determine a borrower’s loan modification options, and can effectively expedite the process.”
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Security systems provider lands line of credit
Posted on June 18, 2009 at 3:32 pm
ADS Security has inked a deal with The PrivateBank out of Chicago for a $30 million line of credit. The deal refinanced ADS’ existing debt and gives it more ammo for acquisitions.
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Refi tide retreats
Posted on June 10, 2009 at 9:11 am
Yes, Johnny, we’re still price-sensitive consumers. The quick rise in mortgage rates in the past month is just as swiftly driving down the number of loan applications.
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Refinancing on the rise
Posted on January 13, 2009 at 8:10 amFrom WKRN:
“We’re doing 60 loans this January,” according to Smithson, who was financing approximately 10 loans per month during the last half of 2008. “It’s almost chaotic. It’s a great problem to have, but is pretty wild, actually.”
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Refi rush ‘the first bright spot in months’
Posted on December 22, 2008 at 7:41 amAs mortgage rates drop to their lowest level in 37 years, Regions is adding people to its Nashville processing operations.
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