LADERA RANCH, CA—Marketplace lenders like Money360 will be a valuable source of bridge debt to overcome the challenges that the tidal wave of loan maturities in 2017 and 2018 will present to borrowers, the firm's commercial-mortgage executive David Christensen tells GlobeSt.com. The firm recently hired Christensen and commercial real estate finance expert Kenneth Wood to its origination team to direct recently created company divisions and support increasing demand in the Northeast and Northwest regions of the US. We spoke with both of them to get their take on changes within the marketplace-lending environment and what drew them in to Money360.

GlobeSt.com: What are your goals in your new roles with Money360?

Christensen: I'm very excited about the opportunity to represent Money360 and its various capital sources to mortgage brokers throughout the Northwest. Money360 offers its own proprietary bridge-lending program and an efficient online marketplace to other capital partners, which include investment funds, community banks, credit unions and pension funds. This combination allows Money360 to provide a one-stop shop for commercial real estate properties that are in need of a short-term bridge with a firm take-out loan proposal.

Wood: My primary focus is on the company's bridge-loan program, with a secondary concentration on Money360's fixed-permanent-rate program. In the bridge program, my goal is to originate more than $75 million and in the permanent program, more than $35 million. My transactions will come primarily from the mortgage banker/broker community in the Northeast region. Transactions will be located on a nationwide basis, but the primary contact will be the brokers in the Northeast, with their clients owning real estate around the country.

GlobeSt.com: What was it about the marketplace-lending environment that attracted you to the firm?

Christensen: Money360 is led by CEO and founder Evan Gentry, who has a thorough understanding of the capital markets and had the foresight to recognize where CRE lending was heading and how to position Money360 to assist brokers and borrowers with their challenging refinance requirements. His leadership gives me the confidence that Money360 is properly positioned in the marketplace.

Wood: I was attracted by the fact that Money 360 has proprietary capital to lend and is the decision-maker in funding its bridge loans. We process, underwrite and service all of our loans; credit decisions are made internally.

GlobeSt.com: What changes do you see happening within marketplace lending over the next several years?

Christensen: As we are all aware, 2017 and 2018 have a tidal wave of loan maturities. These loans have two fundamental issues: 1. Many of these loans were underwritten on proforma income and structured with 10 years' interest-only. In many cases, the loan maturity and underlying lease maturities were not taken into consideration; and 2. These loans are maturing at a time when the traditional capital sources are tightening their underwriting standards, the CMBS conduits are faced with risk-retention requirements and the life-insurance companies are trying to improve the overall quality of their on-book portfolios. Money360 will be a valuable source of bridge debt to overcome these challenges. The ability to close in less than 30 days and take property risks that traditional capital sources will not accept will propel Money360 as a leader in this segment.

Wood: Lenders will tighten up their credit box and risk profiles. CMBS will have risk retention in place, where originating groups will need to worry about how the loan will perform during the duration of the loan. Community banks will also get more conservative on CRE lending. Regulators are concerned that banks may have too much concentration in CRE and will continue to put the brakes on this type of lending.

GlobeSt.com: What else should our readers know about your move to Money360?

Christensen: I have been on both sides of the table, as both a mortgage broker and as a lender. I have worked for a life-insurance company and a bank and have a deep understanding of the balance between providing quick and timely response, proper loan structuring and the assurance to close. These attributes are invaluable to the mortgage banking/brokerage community, and I look forward to reaching out to brokers from San Luis Obispo to Seattle.

Wood: With lenders being more conservative, there is still a flood of refinancing of CRE deals coming up in the next few years. Good deals will not be able find a home for fixed-rate financing and may have to turn to bridge financing to satisfy their request.

GlobeSt.com: What are your goals in your new roles with Money360?

GlobeSt.com: What was it about the marketplace-lending environment that attracted you to the firm?

GlobeSt.com: What changes do you see happening within marketplace lending over the next several years?

GlobeSt.com: What else should our readers know about your move to Money360?

Instant Insights /

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