Lou Garcia

Ask me for the best Negotiating Buyer agent.

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SBA Needs Vs SBA Lender Needs

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FNMA / FHLMC - tightening standards particularly for CRE. "Fannie Mae and Freddie Mac are preparing to impose stricter rules for commercial-property lenders and brokers, following a budding regulatory crackdown on fraud in the multitrillion-dollar market." "Lenders would have to independently verify financial information related to borrowers for apartment complexes and other multifamily properties" "Lenders could face tougher requirements for confirming whether a property borrower has adequate cash and verifying their source of funds" "The new rules might also require lenders to complete due diligence on the appraised value of a property, by evaluating its financial performance" "The two entities together owned or guaranteed roughly 40% of the $2.2 trillion in multifamily mortgage debt as of September 2023" "The new multifamily rules, which could be rolled out as early as this summer, are in early stages and could still change" #cre #credit #lending https://lnkd.in/e3f5WGvd

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Good read regarding election time and housing market.

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Humbled. Honored. Not Deserving. Grateful. These were the first thoughts that crossed my mind yesterday when the Mortgage Bankers Association of Florida presented me with the "Brown L. Whatley Award" for my contributions made to the organization. (For those that don't know, this is THE award. It goes back over 40 years.) What's funny is that I do what I do because its my job. I do what I do because I love my industry. I do what I do because it is fun. I do what I do because giving back is just something we all should do. (It's what feels right.) To be honored for doing something that is my job, fun to do, something I am passionate about and happens to be "the right thing to do" seems to be not fair to others how have poured countless more hours into the organization than me. Nonetheless, I will accept. This recognition made my heart smile. It filled my bucket. Although most of us don't do things to be recognized, recognition goes a long way. Thank you Yvette Clermont, CMB, AMP, Sherry Wenrich, Tim Bazell, Tim Allen, CMB®, Bob Niemi, CMB®, Dawn Henshaw, Robert Villalon, AMP, Michelle Mendez, Doug Leever, Christie Buff, AMP, Suha Zehl, CMB®, AMP, CCP, CPM Shaun E. Williams, CCIM, CMB® & so many others for taking the time to recognize this mortgage dude who just loves doing what he gets to do for a living. Now I need to not break this darn thing. 😆 (Eric Prutsman) Question for you: ➡ WHO IS SOMEONE YOU SHOULD TAKE THE TIME TO RECOGNIZE? ⬅ (I promise, it will mean a lot to them if you do. Even if it is for just doing their job.)

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While regional and community banks' direct exposure to CRE loans has been a major concern, the prevailing wisdom has been that large banks and megabanks have a smaller proportion of total loans in the CRE sector. However, the latest call report data released yesterday as summarized in Jason Goldberg daily email (that shows a sharp rise in the noncurrent loan rate for Investor CRE loans for large bank portfolios with a more modest increase for community banks) and a new study by @Viral Acharya et al. (https://lnkd.in/d95XsKj7) that reveals the escalating indirect exposure of large banks to CRE through their lending to Real Estate Investment Trusts (REITs) may ignite some new concerns about CRE exposure for large and Mega banks. REITs, major players in the CRE market, have increasingly relied on large banks' credit lines to maintain liquidity. This dependence has surged since 2013, making these credit lines a potential conduit for transmitting CRE shocks back to the banking sector. The study calls for regulators to incorporate this indirect exposure into stress tests and for banks to reassess their risk management strategies related to REIT lending. The study's findings are particularly concerning given the recent crisis faced by Blackstone REIT, which was forced to draw heavily on its credit lines to meet investor redemptions. This event serves as a reminder of the systemic risk posed by the interconnectedness of banks and REITs. Interestingly, the Federal Advisory Council (FAC) composed of banking industry representatives has called for restricting bank lending to non-banks like REITs. This was discussed in my previous post (https://lnkd.in/dA37NnKE), This is ironic, as such lending has fueled the growth of private credit funds, now seen as potential competitors to banks. On the other hand- yesterday’s Quarterly Banking Profile (QBP) for 1Q24 from the FDIC showed that deterioration in past due and nonaccrual (PDNA) on non-owner occupied CRE loans was concentrated at the largest banks (over $250bn in assets), which reported a PDNA rate of 4.48%, well above their pre-pandemic average of 0.59%. The next tier of banks, those with between $10bn and $250bn in assets, is also showing some stress, with a PDNA rate of 1.47%, up 12bps and above its pre-pandemic rate of 0.66%. These figures are above the 0.69% for community banks with $1-$10bn in assets. It will be interesting to see how the latest #CCAR exams tackle this issue for large bank portfolios. #banking #CRE #REITs #riskmanagement #financialsystem #economicrisk #nonbanklending #banks #communitybanks Manasa Gopal Prof. Dr. Maximilian Jager Sascha Steffen

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✨ Missed Our Webinar? No Worries! ✨ Mark Ritter shared amazing insights on credit unions and lending challenges last night. Watch the free recording to catch up! https://lnkd.in/eGJHWRbu And next week, Michele Harrington will dive into building a team vs. a brokerage. You won’t want to miss it! #FreeLearning #RealEstateTips #MondayNightLive #RealEstateWebinar

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Is debt consolidation the right strategy for you? Check out mtb.com/debt-consolidation to see if you meet the criteria that will help you determine if debt consolidation will work for you.

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Is debt consolidation the right strategy for you? Check out mtb.com/debt-consolidation to see if you meet the criteria that will help you determine if debt consolidation will work for you.

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In the Mortgage Industry, South Florida is a coveted area to have an operation. The loan sizes, the homes, the opportunities to hire top LO talent and the bragging rights/ feather in the cap for many companies. But….. if a company enters the South Florida landscape without strong representation and solid understanding of the business environment that is South Florida they are destined to fail. The competitive landscape of South Florida pushes margins lower and the cultural diversity of the area creates unique lending scenarios. Without strong leaders/teams who can surround themselves with people that will support the area, most operations that enter the area , find themselves closing their doors within 24 months and mitigating the losses occurred. The hierarchy is also a huge part of understanding the market place, everyone from CEO , CFO and Operations Manager need to have realistic expectations when entering the South Florida market. The cost, the profit margins and the cultural diversity are all things that companies struggle with. Many just cannot get their hands around the business atmosphere of South Florida. The mortgage graveyard is littered with companies from throughout the US that wanted to create a footprint in South Florida.

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Calling all Real Estate Partners! Are your clients running low on funds post-closing? The Federal Savings Bank has the answer. The Smart Loan, designed to seamlessly complement mortgage transactions and help cover costs like the buyer's agent commission. It integrates effortlessly into the pre-qualification stage, helping to ensure your clients get prequalified quickly and efficiently. Let The Federal Savings Bank support you and your clients in navigating industry changes with The Smart Loan!

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