22nd Annual Western States CREF

September 9, 2019

The following are Barry Slatt Mortgage Company‘s primary takeaways from this week’s California Mortgage Bankers Association Western States Commercial Real Estate Finance (CREF) conference in Las Vegas, Nevada.

The general mood across the majority of participants at this year’s event is one of positivity and optimism in regards to the current lending market.

The focus of the conference was west coast financing. Most major real estate markets on the west coast are viewed as healthy and desirable.

All lending segments (insurance companies, CMBS, bank/credit union, and agency) are currently active.

Agency lenders are tapping the breaks on production. They have increased spreads substantially in the past few weeks to slow down their pipelines. Many are hopeful to be back strong by year-end for Q1 2020 closings.

Insurance Companies:
Most insurance companies are actively lending through the balance of 2019, and expect it to carry into 2020. Interest rates for 10-year fixed-rate loans are in the 3-4% range.

Currently lending at a quick pace and expecting that activity to continue in the fourth quarter, finishing the year strong.

Bank/Credit Union:
Most banks and credit unions are currently active, and like life companies and CMBS lenders, are expecting to have a strong finish to 2019.

  1. Interest rates are once again at historic lows, making it favorable to borrow. Most lenders expect this to continue through the remainder of 2019 and into early 2020.
  2. Most major real estate markets are considered to be healthy and strong. Lenders are feeling that we are approaching the end of the current cycle. This thinking is causing some lenders to become more conservative in their underwriting.