fannie mae Archives - Real Estate Investing in Florida

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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The coming year is looking to be an eventful period for mortgages and financial lending in real estate. Debt markets are poised to undergo significant changes over the following years amidst regulatory changes and geo-political headwinds. Investors, both seasoned and novice, should be aware of the changes and the effects they could have on current and future mortgages.

Livingston Hessam, Vice President of financial solutions firm Walker & Dunlop and financing expert, discusses these changes in the debt markets and what investors need to know about their impacts on mortgages and other debt-equity options.

2016 Mortgage Bankers Association Conference
- Annual conference gauges financing market for coming year
- Mixed outlook for 2016
- Multi-family holds strongest appetite for lenders
Debt Categories
1. Agency Debt – Fannie Mae / Freddie Mac
  1. Conventional rates, senior housing, student housing, manufactured housing
  2. High-leverage, non-recourse, cap limits
  3. Reached 2015 cap before end of year
  4. Introducing smaller deal offerings ($1-5 million) – lower upfront closing costs, for typically novice borrowers, not included in annual cap limit, do not require same level of eligibility requirements
  5. Only can acquired through authorized servicers/lenders
2. CMBS Markets (Commercial Mortgage-Backed Securities) – Loans sold by banks into secondary markets
  1. Amid current CMBS 10 year maturity loans wave
  2. Several regulations coming into effect causing uncertainty: Risk Retention (Dec. 2016) – Req. CMBS issuers to hold 5% of loan to securitize deal
  3. Investors and lenders advised to close deals in first half of year
3. Life-Insurance Company Loans
  1. Typical deal – sub-70% leverage, non-recourse, strong exp. sponsor, well stabilized market
  2. Positive lending outlook for 2016
4. Conventional Lending (Banks)
  1. Regulatory changes: Dodd-Frank Act
5. Alt. Lending
  1. Walker & Dunlop offers bridge-lending packages
  2. Good for investors with assets not ready for perm. agency lending
  3. Up to 80% of cost for pre-stabilized deal or value-add deal, up to 36 months, help re-sell or re-finance
  4. For multi-family, student housing, manufactured housing, independent & assisted living, and skilled nursing

Livingston kindly provided us with a detailed, corporate overview package for Walker & Dunlop, further describing the financial solutions they offer as well as contact information.

Corporate Overview 2.22.16