Report from the Barry Slatt Lender Forum

April 18, 2013

Yesterday was the 15th Annual Bay Area Barry Slatt Mortgage Lender Forum, a discussion focusing on the current commercial mortgage lending landscape led by a panel of real estate lending veterans. Here is the post-game wrap up of the market analysis and projections gleaned from the panelists’ insights, including video highlights of the Q & A forum.

The well-attended event consisted primarily of real estate principals, with an impressive lineup of guest speakers that consisted of:

  • Mark McMurtrie, Associate Portfolio Manager- Thrivent Financial for Lutherans
  • Mike Morey, Associate Vice President- The Standard Insurance Company
  • Stephen Holmes, Executive Director- Morgan Stanley

The sentiment of the panel was that the overall health of the market is very strong, which is forcing lenders to become increasingly competitive to make loans. There was consensus regarding the outlook on interest rates for long term fixed rate loans, which don’t appear to be moving significantly higher in the the short term. The long term perspective indicated interest rates would most likely be moving higher. You can view a short video clip of the exchange by clicking here.

Other hot topics included favorable lending markets and a pro/con discussion about prepaying loans with yield maintenance or defeasance penalties. Major metropolitan areas in the U.S. were at the top of the list, with special attention paid to markets in California. Lenders and real estate owners agreed that current market conditions coupled with such diminutive interest rates merit the exploration of prepaying or defeasing loans.

The market is more complicated and fast-paced than ever. These were just a few of the many timely issues discussed at the forum in our ongoing effort to inform clients, and better equip you with the tools to make successful decisions.