Bob Coleman, Editor of the Coleman Report, recorded the comments of Michael D. Sneden from the 2nd Annual National Alliance of Commercial Loan Brokers (NACLB) Conference & Expo opening general session on the State of Lending as it relates to CMBS conduit loans. Coleman said, “Today (October 5) Michael Sneden of ValueXpress presents an outstanding overview of the commercial mortgage-backed securities market. Savvy lenders should read up on this market to understand the scope of the market, and importantly, how secondary market investors impact interest rates to borrowers.”
Coleman reports “Mike predicts interest rates will remain in the 4.5%-5.0% range with volume of $75 billion in CMBS conduit loans in 2017.”
Mike’s comments include a history of CMBS conduit loan volume since the market restarted in 2010 and a briefing on the market turbulence experienced in spring 2016. Mike follows by noting that the turbulence in the spring resulted in depressed CBMS conduit loan origination in summer 2016. Since originations were reduced, a shortage of new CMBS issuance created a lack of new CMBS securities for investors. This led to a resumption of new originations currently and a projection that interest rates will remain in the 4.5%-5.0% range with volume of $75 billion in CMBS conduit loans in 2017.