Commercial Financing and the Abundance of Commercial Mortgage Money

I just returned from the Mortgage Bankers Association's annual conference on commercial mortgage finance.  This year's conference was held in the fabulous Gaslamp District of San Diego.  I came away stunned by the amount of money chasing commercial mortgages.

And the lenders were really rolling out the red carpet for commercial borrowers.  One company was offering 25 year fully-amortized commercial mortgages for no points, no appraisal fee, no toxic report fees, and no closing costs.  You'll find this lender on C-Loans.

Another lender was a huge residential mortgage banker that had just entered commercial.  They were packaging commercial mortgages in the same fully-documented style as home loans  destined for sale to FNMA.  The impressive thing about this giant was that they already had an installed base of 20,000 residential mortgage brokers.

One lender was offering no income verification, no asset verification commercial mortgages at rates only 75 basis points higher than normal bank commercial mortgages.

Never in the history of commercial mortgage finance has so much money been chasing commercial mortgages.