Key Takeaways Conforming loans are mortgages that meet standards set by the Federal Housing Finance Agency (FHFA). They can be purchased by government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. These loans have limitations and guidelines regarding the borrower's credit profile, loan amount, down payment, and property type. The FHFA adjusts the conforming loan limits each November to account for changes in the housing market. If you're considering a mortgage, you may have heard the term “conforming loan.” But what does it mean, how do they work, and why should you consider a conforming loan? Here's everything you need to…
Author: Private Lending Agent
At least $2.6 billion in illegal or questionable money has been invested in commercial real estate across the United States over the past two decades, according to a new report by the Anti-Corruption Groups Network. The report, released in early May, analyzed 25 cases from publicly available sources, including government indictments and news reports, to provide a glimpse into how commercial establishments such as shopping malls, supermarkets and equestrian facilities can be used for money laundering, and it noted that these cases represent only a fraction of the illicit funds entering the market. In 2020, an investigation of the FinCEN…
Key Takeaways If you can't get approved for a business loan at a bank, there are alternative options. The SBA offers a Community-Based Loan Program that is generous in approvals. Bootstrapping, grants, and equity financing can help startups avoid debt. If you want to start or expand a business, one of the most common ways of raising capital is to borrow money from a bank. Bank small business loans tend to offer low interest rates and favorable repayment terms. But traditional banks have strict credit standards: They typically require a personal credit score of at least 670, two years in…
The collapse of a regional bank is something many predicted last year. With rising interest rates and tough economic times, many believed it was only a matter of time. They were right. Signature Bank collapsed shortly after Silicon Valley Bank did in early 2023. While not a total surprise, the incident left many worried that other banks would follow suit. Manhattan-based lender New York Community Bancorp (NYCB) has not experienced the same kind of bankruptcy as Signature or SVB, but it has been in a precarious position in recent months, and the possibility of the bank failing is very real.…
The Governor of Bank of Ireland said the bank was pleased with the quality of commercial property lending, despite the difficulties currently being experienced by the commercial property industry. Patrick Kennedy said the bank's commercial real estate loan book has held up well so far, having fallen in size by about €1 billion, or 12 percent, last year. “This reflects both a prudent approach and proactive bookkeeping,” he said in response to a question from shareholders at the bank's annual general meeting (AGM) in Dublin this morning. Irish commercial property valuations have fallen significantly in recent years due to the…
The funding woes of Starwood Capital's private REIT are the latest sign that the storm is not yet over for retail investment products. Starwood Real Estate Income Trust (SREIT) received $1.3 billion in withdrawal requests in the first quarter of this year but fulfilled less than $500 million of them, The Wall Street Journal reported this week. Starwood then reported that in April, SREIT's redemption queue exceeded its monthly limit of 2% according to Robert A. Stanger, a New Jersey-based investment bank. SREIT, with $9.9 billion in net assets, is second only to Blackstone in the private REIT space. Only…
The cannabis industry is cautiously optimistic about a potential real estate windfall following the Drug Enforcement Administration's plan to reclassify marijuana under the Controlled Substances Act, but real estate experts and owners warn that any big changes could take time to materialize. Cannabis lenders like Chicago Atlantic Real Estate Finance (Nasdaq: REFI) are cautious about how quickly the policy changes could realistically play out. While the DEA's move marks a loosening of marijuana's strictest legal status, the reclassification to Schedule III would maintain the substance's illegal classification under federal law. “We don't expect anything to change in terms of announcements…
One economist I spoke to on Thursday was talking about “three pieces of bad news” about the housing market that came out this week: Sales of new homes were 4.7% lower in April than in March. Existing home sales were down about 2%. And homebuilder sentiment officially plummeted into “depressed” territory in May, marking the first time since November that the National Association of Home Builders' confidence index has fallen on a monthly basis. It's easy to point the finger at high mortgage rates for all of this. According to Freddie Mac, the average rate on a 30-year fixed-rate mortgage…
LOS ANGELES – Mintz is pleased to announce that Real Estate Co-Chair Danny Guggenheim has been selected for the fourth consecutive year in Los Angeles Times B2B Publishing's Commercial Real Estate: Updates, Trends, Visionaries magazine. The magazine recognizes the commercial real estate sector's top CRE executives, dealmakers and advisors, featuring trends, profiles and the latest in the business at large. Honorees were nominated by readers for their success, achievements and exemplary leadership within their organizations and communities across Southern California.Danny is a seasoned commercial real estate attorney specializing in traditional real estate matters, including acquisitions, dispositions and financings, as well…
The national debt is expected to grow rapidly over the next few years, and rising interest rates could further worsen the nation's fiscal outlook. The Congressional Budget Office (CBO) released its long-range projections in March, predicting that if current law remains unchanged, the national debt will grow from 99% of gross domestic product (GDP) in 2024 to 166% in 2054. Rising interest rates are a major factor in this debt increase. Tweet Interest rates on U.S. Treasury bills have a significant impact on federal borrowing costs and, therefore, the accumulated amount of federal debt. CBO projects that the average interest…