MARKET UPDATE BLOG
Top Takeaways From The 21st Annual Barry Slatt Mortgage Lender’s Panel And Luncheon
April 25, 2019

Top executives from prominent lenders weighed in on many capital market hot topics at Barry Slatt Mortgage Company’s 21st Annual Lender’s Panel and Luncheon. The event featured representatives from a selection of our correspondent lenders which included Symetra Financial, StanCorp Mortgage Investors, PPM Financial, Thrivent Financial, and Barclays. The lender panelists were asked about the evolving perception of investing in retail product, mistakes they are seeing made in the lending business, and where they think the market is headed in the year to come. Here are some highlights from the panel:

  1. There is currently a lot of competition in the marketplace for good quality loans.
  2. Lenders feel the fear over the “Amazon effect” is nearing an end. Most major retail chains have adapted by improving their own online marketplaces as well and allowing in-store pickup of online orders and ever allowing returns of Amazon order to their brick-and-mortar locations.
  3. There has been a decrease in early payoff due to uncertainty in the marketplace. More borrowers have been willing to take their loans to full term.
  4. The National economy continues to be strong through this long cycle, and the vast majority of the lenders and audience felt the Fed would not increase nor decrease rates for the remainder of 2019.
  5. Multi-family and industrial properties are among lender priorities.
  6. Panelist noted a 10% increase in allocation from 2018 to 2019.
  7. CMBS lenders are placing and holding bridge loans on their books in addition to their CMBS loans. These portfolio loans are typically on larger transactions.
  8. Forward rate locks from 120-180 days are available at a minimal premium.
  9. Lenders have an increased level of perceived risk for loans on retail properties.
  10. It is really important to hire an experienced and qualified mortgage banking company to manage your loans.