Will We Ever Learn?
After my annual foray to talk to real estate groups in Canada where lender prudence encouraged by regulator oversight has helped keep commercial property markets in equilibrium for the past two decades, I returned to the USA and read in the New York Times about how retailers like Wal-Mart and Home Depot have developed shadow banking schemes to extend credit at higher than average credit card interest rates to folks with low credit scores. The idea, of course, is to boost sales just as regulators here have tightened the screws on bank consumer lending practices to avoid the pitfalls of people buying things that they cannot affordremember five years ago like the sub-prime mortgage crisis. And so what will happen? Many of these cash strapped buyers, who never should have been extended this credit, will eventually default on their credit card balances or consumer loans. Do we ever learn?
SAN DIEGO—Berkadia’s Ernie Katai discusses the multifamily demand and fundamentals that have helped his firm achieve rapid growth and how the firm is preparing for the year ahead, in this EXCLUSIVE video interview.
PLANO, TX—The closures, planned to occur over the next few months, come on the heels of the company’s first year of profitability since 2010.
NEWPORT BEACH, CA—Over time, long-term and short-term interest rates generally correlate, though this is not always the case in the short run, CBRE’s Phil Voorhees tells GlobeSt.com in this EXCLUSIVE story about his yield-prediction contest.
SAN DIEGO—Speakers during the CMBS panel at MBA’s CREF/Multifamily Housing Convention and Expo 2017 say educating brokers and borrowers is key to a healthy CMBS future.