Mortgage Banking

Making sense of commercial real estate finance.

Archive for December, 2007

Have a Happy Holidays!

Posted by Jordan Crouch on December 17, 2007

The market isn’t in turmoil but it’s not peachy either. As expected last week, the Federal Reserve lowered the Fed Funds Rate another 25 basis point. But the market wanted 50 basis points and responded negatively Tuesday afternoon, sending all the market indexes down. Investors are so hard to please!

US inflation is on the rise and former Fed Chairman Alan Greenspan is mumbling about stagflation (when inflation is up and economic growth is down). Not what you want to hear during the Christmas season. I’m sure Big Ben (Brenneke) doesn’t want to hear that. How’d you like your former boss second guessing every move you make and telling everyone about it?

Whatever the market does for the last two weeks of the year, I’ll be ignoring it in sunny California. I am taking a break from posting for the rest of the year. But make sure you come back in 2008 for some big changes around here.

Have a great holiday and see you next year!

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Posted in Seattle Real Estate | Leave a Comment »

Weekly Rates – Dec. 10, 2007

Posted by Jordan Crouch on December 10, 2007

With the Federal Reserve meeting tomorrow and another interest rate cut almost a sure thing, Wall Street has begun to show signs of life. The national unemployment rate remained low, single family existing-home sales were stable in October, several billion dollar acquisitions are being discussed again and even McDonald’s is showing an increase in same-store sales. And yet another bank, UBS this time, has taken a $10 Billion write-down. Depending on what happens tomorrow with the Fed, anything is possible.

Posted in Capital Markets | Leave a Comment »

What is SAM?

Posted by Jordan Crouch on December 4, 2007

If you’re from Seattle, you’ll think SAM means Seattle Art Museum. And you’d be correct. But not when it is related to commercial real estate. In this case, SAM means Strategic Alliance Mortgage. Here’s a quick look at what it is.

  • WHO? SAM is a unique company owned by 21 members who are all individually owned, commercial real estate investment banking/mortgage banking firms.
  • WHAT? SAM members share ideas, market intelligence, and recent loan pricing to better compete with national competitors. SAM member firms collectively originated $14 Billion in commercial loans in 2006.
  • WHEN? Formed in 1998, SAM has grown to become a viable, new business model for the commercial mortgage banking industry.
  • WHERE? SAM firms are located in 55 markets coast to coast throughout the United States.
  • HOW? SAM member firms utilize a web-based system to communicate, share ideas and catalogue capital market participants, information and trends.
  • WHY? To quote John Fenoglio of Live Oak Capital, Ltd. in Houston, former chairman of the executive committee, “SAM is a great alternative as it provides freedom and flexibility for a local firm, yet has all of the benefits of a national firm without the hassles and headaches inherent in all large companies.”

I rarely “toot my own horn” but the SAM Network has been an integral part of the success of NBS, especially in the chaotic market we are currently in.

Posted in Finance 101, Lenders, Seattle Real Estate | Tagged: , | Leave a Comment »

Things to think about…

Posted by Jordan Crouch on December 3, 2007

Will there be another Fed Rate cute? A month ago everyone said not for the rest of the year. But comments made by Federal Reserve Officials are leading people to wonder if there might be a rate cut soon. The Federal Reserve meets next week. We’ll find out then.

Look for the market to move (up or down) on Friday when the November employment report is released. The housing sector is facing a 20 year low while Treasury Secretary Henry Paulson is pushing for an interest rate freeze on subprime loans.

On the CMBS side of things, there is still $54B of unsold commercial mortgages still outstanding. The conduits are literally out of the market.

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