According to the Wall Street Journal, foreclosures on higher-risk commercial property loans – particularly mezzanine loans – are increasing. Mezzanine financing, which often serves as second-lien debt, allows borrowers to meet tighter bank underwriting standards....
Read MoreThe Bureau of Labor Statistics released the consumer price index for October, which showed continued easing of price pressures. Prices rose 3.2% year-over-year, down from September and August, but remain elevated compared to the Federal...
Read MoreOn November 14, under the direction of the FHFA, Fannie Mae and Freddie Mac (the GSEs) each announced a $70 billion cap for multifamily loan purchases in 2024. The level for 2024 is lower than...
Read MoreProposals to convert vacant office space to multifamily housing face financing and development challenges. Support from the government through tax incentives and grants may not be enough for investors to get on board, as residential...
Read MoreLarge U.S. banks are turning to synthetic credit risk transfers (CRT), amidst higher interest rates and proposed Basel lll capital regulations, to remove risk from their balance sheets. Until recently, CRT deals were rarely used...
Read MoreAccording to New York Federal Reserve data, U.S. credit card spending continues to rise and is up $154 billion year-over-year to $1.08 trillion. Credit card delinquency rates also now exceed pre-pandemic levels, with the Fed...
Read MoreU.S. subprime consumers are increasingly falling behind on their auto loan payments, according to Bloomberg. In September, 6.11% of subprime auto borrowers were 60 days past-due, the highest percentage since 1994, according to Fitch Ratings....
Read MoreCRE lending levels are decreasing as default risks on expiring debt loom. Investor demand to develop or buy CRE has diminished under the pressure of rising costs, resulting in the number of new commercial construction...
Read MoreHigh mortgage rates have brought residential property sales to their lowest level since the 2008 subprime crisis. According to Freddie Mac, the average rate on a 30-year fixed rate mortgage rose to 7.57%, putting a...
Read MoreCompanies with a large amount of debt are frequently bypassing traditional bank lending, and instead turning to direct lenders within the private credit industry to refinance their outstanding debt. To account for these higher-risk corporate...
Read MoreIn response to industry concerns, the FHFA plans to broaden its reps and warrant loan repurchase policies to include loans that have successfully exited a Covid-19 forbearance plan. In prepared remarks before an industry conference,...
Read MoreThe recent surge in long-term U.S. Treasury yields has been associated with a sharp rise in the term premium. This “unknowable number” is the residual yield after accounting for anticipated path of short-term interest rates over...
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