CAPITAL POURS INTO COMMERCIAL REAL ESTATE
By Christopher Shearer, MBA, “San Diego Mortgage Man”
(Mortgage Solutions FCS )
Life companies are jockeying to keep their seat at the table as capital continues to pour into commercial real estate. Thanks to maintaining the most conservative standards in the lead up to the boom, life insurance companies had fewer bad loans to work out after 2008 and used that strong capital position to increase their share of the commercial real estate lending market. Life insurance companies originate more loans today than they did at the peak of the boom—the only lender segment that can make that claim. But with commercial banks and conduit lenders getting more aggressive, life insurance companies are being pressed. Origination volume for commercial/multifamily loans rose 24 percent in 2012, according to the Mortgage Bankers Association’s (MBA) Originations Index. Commercial ban...
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