CRE/CMBS Outlook May Depend on Property, Liquidity


U.S. commercial real estate market fundamentals currently look as if they will continue to stabilize going forward but it will depend to some extent on property type, location and liquidity, according to Fitch’s recent structured finance outlook conference call.

“At this moment in time Fitch expects that market fundamentals for U.S. commercial real estate will continue to stabilize,” said Huxley Somerville, Fitch’s head of U.S. commercial mortgage-backed securities, during the call.

He noted that one possible risk to the forecast that remains difficult to quantify is the effect “that a potential lack of CMBS liquidity may have on performance.”

This, he noted, “was already apparent in the second half, although its effects seem to have been muted at the property level.”

Daily Briefing | Tuesday, December 13, 2011

  • GOP Set to Block Galante Confirmation at FHA

    Senate Republicans plan to block the confirmation of Carol Galante to head the Federal Housing Administration until the Obama administration takes more forceful action to strengthen the government mortgage insurer – and issues a blueprint for dealing with Fannie Mae and Freddie Mac.

  • DocuTech Acquires Competitor LSSI

    Mortgage document preparation technology vendor DocuTech acquired competing doc prep technology Docs3D in a deal announced Tuesday.

  • Fed Keeps Existing Programs on an Even Keel for Now

    The Federal Open Market Committee’s statement from its last meeting of the year acknowledged some slight economic growth but generally kept current stimulus, including mortgage-related programs, on a steady path.

  • IG Busy Investigating Several Frauds Against the GSEs

    FHFA Inspector General Steve Linick said he has opened “numerous” criminal and civil investigations of lenders, servicers, individuals and other firms that have victimized Fannie Mae and Freddie Mac.

  • FHFA Sues Chicago Over Fees for Vacant REO

    The Federal Housing Finance Agency is urging a U.S. district court to block the city of Chicago from enforcing an ordinance that could increase the cost of maintaining foreclosed properties controlled by Fannie Mae and Freddie Mac.

  • DebtX to Sell Troubled ADC Loans

    DebtX, Boston, has been hired to sell roughly $334 million of troubled acquisition, development and construction loans for a bankrupt real estate fund.

  • Senate Committee Plans Vote on Hoenig for FDIC Seat

    The Senate Banking Committee has scheduled a vote Tuesday on Thomas Hoenig to become vice chairman of the Federal Deposit Insurance Corp.

  • Umpqua Expanding Commercial RE Lending

    Umpqua Bank, Roseburg, Ore., is expanding its commercial real estate lending operations by upgrading its structure to be a division of the bank and promoting John Swanson to senior vice president and commercial real estate manager.

  • Stocks Undo Progress in Household Balance Sheets

    If households are ever to climb out of the financial hole created by the housing bust, stocks are going to have to do better.

  • Prudential Mortgage to Add Multifamily LOs

    Prudential Mortgage Capital Co., Newark, N.J., has hired at least two multifamily loan officers for the Boston office it opened in October and plans to expand further throughout the nation, one senior executive of the company told National Mortgage News.

Leave a Reply