Commercial Mortgage Loans; Barclays & Citi have large exposures

Financial Week is reporting that Citigroup and Barclays each have more than $20B in exposure to commercial mortgage related investments. Commercial mortgage paper is holding up well but weakening significantly as time goes by. The fear is that if commercial mortgages start to experience real problems it will trigger another leg down in the economy and the banking system.

It’s a race against time…will the economy recover fast enough to avoid large delinquency problems in the commercial mortgage sector? Will the credit markets improve in time to refinance the hundreds of billions of commercial mortgage loans coming due over the next few years? Stay tuned.

MasterPlan Capital LLC – You Can Get a Commercial Mortgage Loan – Apply Online

NAR: The Commercial Mortgage Industry Needs Liquidity Too!

The National Association of Realtors (NAR), the trade group that represents real estate agents and brokers, is reminding the Government that commercial mortgage paper needs love too. Lawrence Yun, the NAR’s Chief Economist is encouraging the Federal Government to step in. Wednesday (12/17/08) in an interview with Reuters Mr. Yun remarked: “Although access to residential mortgages has improved, the opposite is true for commercial loans,” said Lawrence Yun, NAR’s chief economist. “We need liquidity for commercial mortgage-backed securities not only to free the market, but also to rollover existing debt,” And by “need liquidity” he means the taxpayers ought to buy new and existing commercial mortgage debt. “The commercial real estate market is frozen because there is no government backstop. Lenders are not making commercial loans because there are no private investors who want to hold them.”

He’s got a point about the commercial mortgage debt market; very few private dollars are being committed to this area. But is Government intervention a help or a hindrance to recovery? By backing residential mortgage paper but not commercial the Fed’s have inadvertently caused investors to abandon the commercial space for the security of the Government bed-spread that is covering residential.

Indeed, Barclays is touting the relative health of the multi-family mortgage market. Why? Because Fannie and Freddie are buying apartment building paper like crazy. But when money flows to Government backed paper there is not much left for private paper.

Our firm, MasterPlan Capital LLC, has acces to both private and institutional funding sources and is able to originate commercial mortgages against most types of commercial real estate.

Click the link to use our simple, 1 page commercial mortgage application.

Barclays Warns of Commercial Mortgage Delinquencies

Bloomberg is reporting that Barclays has joined the chorus warning the financial world about the weakening commercial mortgage bond market. The analyst is different but the narrative is the same; commercial mortgage delinquencies will rise, defaults will rise, foreclosures will rise, property values will fall, the economy will get worse causing more delinquencies, defaults and foreclosure…

Braclays is a little late to the pity party but misery loves company and they don’t call it “conventional wisdom” for nothing.

MasterPlan Capital is still in the game making deals and closing loans.
Our simple, 1 page commercial mortgage application is easy to complete and we respond the very next business day.