US Lender Forum - March 2014

Executive Summary
  • ​​The pace of lending activity continued to pick up during the final three months of 2013, as increased refinancing and investment sales activity counterbalanced upward shifts in the yield curve.
  • The CBRE Lending Momentum Index, which tracks the pace of U.S. commercial loan closings, increased 5.2% during Q4 2013. On an annual basis, the Index was up 15.5%, its fourth-straight year-over-year increase.
  • Banks and life companies were the most active commercial lenders during Q4 2013, accounting for 30% and 28%, respectively, of the quarter's origination volume. CMBS was also active, with a healthy 23% share of Q4 2013 closings.
  • Average loan-to-value ratios on permanent, fixed-rate loans were fairly stable during 2013, staying within 60%-65% range for commercial mortgages, and the 66%-69% range for multifamily-related mortgages.
  • Unsurprisingly, coupon rates shifted upward during Q4 2013, with 42% of loans carrying rates between 4.5% and 5%, compared to 31% in the previous quarter.

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