198289 Resource 78777 78860 78860 1204092509053 1204092509053 Controlled Smaller Banks Are Stealing Commercial Loan Market Share From the Money Center Banks

The Money Center Banks Are Limiting New Commercial Loans Due to Subprime Losses

Seven months ago the money center banks were making lots and lots of commercial real estate loans.&nbsp; By <span style="font-weight: bold; font-style: italic;">money center banks</span> I mean the big nationwide banks, like Citicorp, Bank of America, JP Morgan Chase, Wells Fargo Bank and Wachovia.<br /><br />Unfortunately for most of the money center banks, they were participants in the residential mortgage backed securities pipeline.&nbsp; They made alt-A home loans and subprime home loans, and they briefly held these loans in their portfolio until the loans were ready to be securitized.&nbsp; <br /><br />Then the music stopped.&nbsp; The market for residential mortgage-backed securities secured by alt-A and subprime home loans suddenly dried up.&nbsp; There were no more buyers.&nbsp; <br /><br />As a result, the money center banks found themselves stuck with tens of billions of dollars of these risky home loans on their books.&nbsp; They lost a lot of their liquidity, and they are all terrified of future loans losses.<br /><br />The end result is that the money center banks have largely frozen their balance sheets.&nbsp; They aren't making a lot of loans of any type, so their commercial real estate loan volume is down sharply.<br /><br />Fortunately most of the smaller commecial banks were not involved in securitizing subprime home loans.&nbsp; Therefore they were not stuck with billions of dollars of crumby home loans when the music stopped, and they still have an appetite for new commercial real estate loans.<br /><br /><span style="font-weight: bold; color: rgb(204, 0, 0);">So if you need a commercial real estate loan today, and your deal is clearly bankable, look for a smaller bank to make the deal.</span><br /><br />You can also apply to 750 different banks for a commercial loan in just four minutes using <a href="http://www.c-loans.com/onlineapp" title="Free databank of 750 different commercial real estate lenders.">C-Loans.com</a>.<br /> 9 application/xml false commercial loan commercial loans commercial mortgage commercial mortgage lenders commercial mortgage loans commercial mortgage rates commercial mortgages commercial property loan commercial property loans commercial real estate loan commercial real estate loans Free Databank of 750 Different Commercial Real Estate Lenders http://www.c-loans.com/onlineapp Mozilla/5.0 (Windows; U; Windows NT 5.1; en-US; rv:1.8.1.12) Gecko/20080201 Firefox/2.0.0.12 127.0.0.1 127.0.0.1 GBlackburne 67.76.29.24 false true false false true 198508 false false true false false false true 78777 blog blogsite/CLoans/web