Report from the 2014 SoCal Lender Forum

April 2, 2014

On March 18th Barry Slatt Mortgage hosted the 4th Annual SoCal Lender Forum event to showcase a few of its correspondent lenders. The focus of the panel was centered on lending programs and the broader Southern California commercial real estate market.

This year’s SoCal Lender Forum was a well attended event which consisted of primarily of real estate principals, with an impressive lineup of guest speakers such as:

·         Kieran Quinn, Chairman, Pillar Financial an Affiliate of Guggenheim Financial
·         Vin Reilly, Origination Manager for Symetra Financial
·         Mike Morey, AVP for The Standard Insurance Company
·         Brad Nechman, Banker, Morgan Stanley

The sentiment of the panel was that the overall health of the California market is strong and that they expect to see increased production and opportunity in both Northern and Southern sections of the State. There was consensus regarding the high level of competition amongst lenders and their desire to put money to work along the coastal communities as well as select inland markets. Although the lenders all hinted to higher rates for long term fixed rate loans, they do expect rates to remain in a competitive range throughout the balance of 2014.

Click here to watch a short video clip of Pillar Financial Chairman Kieran Quinn discuss the possible directions interest rates may take in 2014.

Other topics discussed on the panel focused on how lenders are carving out specific niches for themselves amongst the competition. Competitive advantages included forward or extended rate locks, providing term loans out to 20 years fixed, and providing alternative prepayment penalty options to investors who are looking for flexibility.

The market is more complicated and fast pace than we have seen in recent years. As a major provider of capital in California and on a national basis, our goal is to continue to provide real time data in an effort to inform our clients and better equip you with tools to make successful decision.