Trying to make sense of the real estate lending market?

For the uninitiated investor trying to make sense of real estate lending and financing options, it came seem like a lot to take on. There are a lot of factors that play into the overall conditions of the real estate lending market. The MBA conference is a great way for you to get a gauge on current lending conditions and alternative financing options as well as an idea of what you can expect to see coming down the road via legislative and regulatory changes.

If you can’t attend these conference, that’s okay! Each year, we talk with an industry insider who attended the conference to bring you key takeaways and insights into the world of real estate lending.

This episode, we talk with Casey Siggins, a loan origination expert with Franklin Street specializing in real estate debt and equity. Casey gives us his takeaway from the conference and we discuss what’s going on with the big players: agency debt, CMBS, and bank loans. We also talk alternative financing and lending options as well as construction loans.

About Our Guest:

Casey Siggins is the Director of Loan Origination with Franklin Street Capital Advisors. Casey specializes in the origination of debt and equity for all income-producing properties. Previously a Senior Analyst with Franklin Street, Casey assisted in the transactions of more than $200 million in assets. Casey is actively involved with the Tampa Bay real estate investing community.

You can reach Casey directly at casey.siggins@FranklinST.com or by calling his office at (813) 397-1638. You can find out more about services offered by Franklin Street through their website.

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It’s a new year and change is in the air. With financial regulation changes sure to come and the recently announced Federal interest rate increases, it’s no wonder mortgage banking and real estate lending is hot on investors’ minds.

This episode, we have Livingston Hessam, who just returned from this year’s Mortgage Bankers Association Commercial Real Estate Finance and Multifamily Housing Convention & Expo.

Listeners will remember Livingston from episode 70, in which he gave us a recap on multifamily mortgage banking and real estate lending from the 2016 conference. Livingston is Vice President of Walker & Dunlop‘s Tampa office. Livingston brings over 12 years of experience in real estate lending and finance solutions to Walker & Dunlop, which just celebrated it’s 80th anniversary.

Livingston offers up a recap of the 2017 CREF/Multifamily MBA Conference and discusses key themes from the past year and the current state of mortgage banking and real estate lending.

What’s In Store for Mortgage Banking and Lending

Agency Annual Caps

Fannie Mae & Freddie Mac each allocated $36.5 billion for 2017 (same as 2016)
Certain loans and portions of loans are excluded from the cap (i.e. affordable and green/energy efficient)
Fannie Mae & Freddie Mac multifamily production totaled over $110 billion in 2016.
Fannie up 30%, Freddie up 20% from 2015
Expected to capture 40% of total multifamily volume for 2017 ($50-55 billion each)

Commercial Mortgage-Backed Securities (CMBS Loans)

Risk-retention regulations put in place in 2016, narrowing amount of CMBS lenders
Post-election stability, but more selective lending market
CMBS lenders ramping up bridge-lending

10-year Spreads

Life-insurance (50% leverage and under): 125-135 range
CMBS (75% leverage): 250-280 range
Agency (80% leverage): Low 200s range
Federal interest rate sees .25% increase
Expected to increase to 2.75-3% by end of year

Hot Topics

Trump Administration
- Tax reforms
- Dodd-Frank roll-backs
Retail lending
- Publix most active retail buyer in FL
- Grocery chains are buying out plazas after lease terms or taking right of first refusal on new lease terms
- Reduced supply of grocery-anchored retail
- Strong retail appetite for real estate lenders

Investor Resources

In addition to his V.P. role at Walker & Dunlop, Livingston is President of the Society of Real Estate Professionals (SOREP). Formerly the Tampa chapter of University of Florida’s Bergstrom Council, SOREP hosts networking events and seminars to professionals and gives back to Florida universities. SOREP focuses on all aspects of the real estate industry and is open to all. Click here for more info.
Walker & Dunlop offers comprehensive real estate financial solutions for all income-producing properties. For more info, visit Walker & Dunlop website.
To contact Livingston directly, click here.