Eric Von Berg - Newmark Realty Capital - 595 Market Street, Suite 2550, San Francisco, CA 94105 - for loan quote: 415 956 9922

February 13, 2013

Newmark Realty Capital’s Correspondent Lenders start 2013 with Large Production Goals


Commercial property borrowers can look forward to another good year in 2013!  

Money is cheap and plentiful.  Yields are low but for life insurance companies and other lenders looking to make long term fixed rate investments, commercial loans offer relatively high risk-weighted returns versus corporate bonds, government bonds and other fixed income assets.
Banks, CMBS originators, the GSE’s and life insurance companies all have big appetites for 2013. 
2013 California Correspondent Lenders Targets
The banks are now generally healthy and needing to lend.  The CMBS world is achieving pricing that is getting near that of the life companies.   New issues of CMBS bonds are selling well and the conduits are beginning to use some of their old underwriting tricks.   For deals that need max proceeds once again they are the lenders of choice.

Each of Newmark Realty Capital’s correspondent lenders is either holding or increasing their production goals for 2013 over 2012. 
Most of our life insurance commercial mortgage departments are being told by their Chief Investment Officers, bring it on! If the mortgage department meets its production targets for 2013 early in the year those targets will be raised.   We do not expect to see any life insurance lenders going out of the market in 2013.

Looking back on 2012

These higher targets come after a strong performance on our industry last year. Mortgage Banker’s Commercial Property Loan Production for 2012 was up 24% over 2011.
20112012% Change
Life Company & Pension Funds
$49 B
$49 B
$58 B
$82 B
$22 B
$32 B
$55 B$65 B18.20%
Total$184 B$229 B24.40%