Increasing Competition Amongst Lenders
July 16, 2014
Last year the 30 insurers with the largest commercial mortgage portfolios originated $58.8 billion in loans, eclipsing the previous record of $56.6 billion set in 2007, according to a review by Commercial Mortgage Alert. As this year began most lenders expected to meet or exceed their 2013 figures.
But competitive headwinds are complicating that effort, as regional and community banks have re-entered the lending market in a big way, joining insurers, CMBS shops, and large banks.
We are seeing all of the capital sources in the market year for the first time in a long time” said an executive at one of the biggest insurers. “There certainly seems to be plenty of appetite from life companies, banks, and CMBS lenders.”