MBA Newslinks Archive

“The surge in construction is welcome given broad-based tenant demand, which is being supported by a number of positive economic drivers. While there is no one surefire indicator to gauge future demand, the totality of the economic data makes us optimistic that the industrial market will remain relatively balanced in the coming quarters despite a flush construction pipeline.”–Dave Egan, CBRE Americas Head of Industrial & Logistics Research.

“Mortgage lenders with servicing portfolios experienced significant fluctuations in the valuation of their mortgage servicing rights related to corresponding interest rate fluctuations during 2016. Most servicers reported net servicing financial losses in the first half of the year, followed by recoveries by the end of the year.”–Marina Walsh, MBA Vice President of Industry Analysis.

“We believe some aspects of the Dodd-Frank Wall Street Reform and Consumer Protection Act and other statutes have made the mortgage market safer; however, in many other respects the Dodd-Frank rules have reduced the availability and affordability of mortgage credit for many American families. While we believe some of these new regulations were needed, the pendulum has swung too far and certain aspects of the current regulatory regime warrant review and adjustment.” –MBA President and CEO David Stevens, CMB, in a letter to Treasury Secretary Steven Mnuchin.

“At what point these home price increases create unaffordable housing conditions remains to be seen. However, mild climates and well-paying jobs continue to attract new residents to [the West and South]. It appears likely the price increase trend will continue into the near future.”–Mark Melikian, Chief Valuation Officer with Summit Valuations LLC, Des Plaines, Ill.

“Despite the overall market strength, interest rate-sensitive markets are starting to show signs of cracking. These markets are predominantly very expensive and interest rate increases significantly soften demand for consumers on the margin of affordability.”–Eric Fox, vice president of statistical and economic modeling with Veros, Santa Ana, Calif.

“Property values have been going sideways recently, as a creep in cap rates is offsetting healthy top-line growth. Industrial properties are an exception to that trend–cap rates have continued to move lower over the past few months.”–Green Street Advisors Senior Analyst Peter Rothemund.

“PACE loans are, in substance, mortgage-related financing and should adhere to federal mortgage financing rules. This legislation will subject PACE loans to the same Truth in Lending Act consumer protections required of other applicable mortgage products. We look forward to continuing to work with Congress on this very important issue.”–MBA President and CEO David Stevens, CMB.

“The post-election rise in interest rates has taken a bit of wind out of the sails of the transactions’ market in the first quarter. The degree to which it and other potential market changes–such as tax reform proposals, general economic growth, foreign investment and consumer confidence–will affect borrowing and lending in 2017 is still to be seen.–MBA Vice President for Commercial Real Estate Research Jamie Woodwell.

“Home prices are at peak levels in many major markets and the appreciation is being driven by a number of dynamics–high demand, stronger employment, lean supplies and affordability-that will continue to play out in the coming years.”–Frank Martell, president and CEO of CoreLogic, Irvine, Calif.

“The HVCRE rules are disproportionally affecting ADC lending by driving up borrowing costs and reducing credit availability,” the letter said “The rules also appear to be contributing to the slowdown in bank commercial real estate lending.”–From an MBA/trade group letter supporting proposed legislation that would clarify High Volatility Commercial Real Estate provisions under the Basel III rule.