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Commercial Real Estate (CRE) is the bread and butter of most community financial institutions, which makes this article's topic front and center for economists, bankers, and regulators alike. How much of the post-COVID-19 work-from-home policy changes are hurting the very same assets that community financial institutions hold? Is your financial institution well prepared in the event of a CRE value correction?

Just published for Forbes: Curinos' director of real estate lending solutions, Richard Martin, discusses the current mortgage rate environment, the future of mortgages as wealth-building solutions, inflation's impact on the market, and more with Roger Valdez, director of the Center for Housing Economics: https://hubs.li/Q02zkYFX0

- UK private bank Hampden & Co saw new client numbers increase by almost a fifth (19%) in FY2023 to finish the year at a new high of 5,598. - Client growth was driven by demand for personalised banking and bespoke lending following introductions from existing clients, professional advisers and mortgage brokers, as well as clients transferring from other private and mainstream High Street banks. Business introduced by mortgage brokers was up 39%, more than double the growth seen in FY2022 (16%). - Strong demand for borrowing – including residential, retirement-interest only, buy-to-let and self-build mortgages – saw total lending rise 9% to £488 million. Deposits increased 8% to £858 million, with term accounts seeing net inflows of £142 million as savers took advantage of higher rates. - Launched in 2015, Hampden & Co recorded profit before tax of £9.1 million in 2023 (2022: £2.0m). [The Scotsman].

If your credit score isn’t high enough for an A lender, don’t worry! Alternative lending options can still help you achieve your homeownership dreams. Here’s how: 1. Private Lenders: Offering flexible terms, they can provide Non-Income Qualified (NIQ) financing, perfect for those with poor or no credit history. Keep in mind these mortgages are usually short-term (3-6 months) with higher interest rates. Have a solid exit strategy ready! 2. Monoline Lenders: These specialized financial institutions offer a range of mortgage options. Some have less stringent credit requirements, making them a great choice for those with bad credit. 3. Credit Unions: Provincially regulated, credit unions offer more flexible lending criteria. Without the federal stress test, mortgage approvals can be more situational. Risks to Consider 🚨 • Larger down payments (often 20%+) • Higher interest rates • Shorter mortgage terms • Increased risk of foreclosure • Potential financial strain Steps to Improve Your Chances 🔑 1. Improve Your Credit Score: Timely payments and responsible credit management are key. 2. Save for a Larger Down payment: The more you save, the better your chances. 3. Consider a Co-Signer or Guarantor: They can boost your approval odds. 4. Get Pre-Approved: Understand your borrowing potential. 5. Compare Rates and Terms: Find the best option for your needs. 🏡 Don’t let bad credit hold you back from owning a home! At TCG Lending Centres, we’re here to guide you through your alternative lending options. . . #MortgageTips #BadCredit #FinancialFreedom #CanadianMortgages #BrokerageWithAHeart #TCGLendingCentres

To succeed in today's competitive economy, financial institutions (FIs) need to focus on providing tailored offers for the products and services consumers require at the right moment. It's crucial for banks and credit unions to break down data silos to avoid missed cross-selling chances. Learn more about the importance of integrating consumer and mortgage lending data here: https://lnkd.in/gwwSf8xM

If your credit score isn’t high enough for an A lender, don’t worry! Alternative lending options can still help you achieve your homeownership dreams. Here’s how: 10. Private Lenders: Offering flexible terms, they can provide Non-Income Qualified (NIQ) financing, perfect for those with poor or no credit history. Keep in mind these mortgages are usually short-term (3-6 months) with higher interest rates. Have a solid exit strategy ready! 11. Monoline Lenders: These specialized financial institutions offer a range of mortgage options. Some have less stringent credit requirements, making them a great choice for those with bad credit. 12. Credit Unions: Provincially regulated, credit unions offer more flexible lending criteria. Without the federal stress test, mortgage approvals can be more situational. Risks to Consider 🚨 • Larger down payments (often 20%+) • Higher interest rates • Shorter mortgage terms • Increased risk of foreclosure • Potential financial strain Steps to Improve Your Chances 🔑 13. Improve Your Credit Score: Timely payments and responsible credit management are key. 14. Save for a Larger Down payment: The more you save, the better your chances. 15. Consider a Co-Signer or Guarantor: They can boost your approval odds. 16. Get Pre-Approved: Understand your borrowing potential. 17. Compare Rates and Terms: Find the best option for your needs. 🏡 Don’t let bad credit hold you back from owning a home! At TCG Lending Centres, we’re here to guide you through your alternative lending options. Dee Sgro Mortgage Broker 289.456.8830 dee@tcglendingcentres.com . #MortgageTips #BadCredit #FinancialFreedom #CanadianMortgages #BrokerageWithAHeart #TCGLendingCentres

If your credit score isn't high enough for an A lender, don't worry! Alternative lending options can still help you achieve your homeownership dreams. Here’s how: ~Private Lenders: Offering flexible terms, they can provide Non-Income Qualified (NIQ) financing, perfect for those with poor or no credit history. Keep in mind these mortgages are usually short-term (3-6 months) with higher interest rates. Have a solid exit strategy ready! ~Monoline Lenders: These specialized financial institutions offer a range of mortgage options. Some have less stringent credit requirements, making them a great choice for those with bad credit. ~Credit Unions: Provincially regulated, credit unions offer more flexible lending criteria. Without the federal stress test, mortgage approvals can be more situational. Risks to Consider 🚨 ~Larger down payments (often 20%+) ~Higher interest rates ~Shorter mortgage terms ~Increased risk of foreclosure ~Potential financial strain Steps to Improve Your Chances 🔑 ~Improve Your Credit Score: Timely payments and responsible credit management are key. ~Save for a Larger Down payment: The more you save, the better your chances. ~Consider a Co-Signer or Guarantor: They can boost your approval odds. ~Get Pre-Approved: Understand your borrowing potential. ~Compare Rates and Terms: Find the best option for your needs. 🏡 Don't let bad credit hold you back from owning a home! At TCG Lending Centres, we're here to guide you through your alternative lending options. . . #MortgageTips #BadCredit #FinancialFreedom #CanadianMortgages #BrokerageWithAHeart #TCGLendingCentres

💡 Weekend Insights from Highland Financial Services: 1. Fixed Rates Slashed 🏡📉 A further 10 lenders have reduced their fixed rate mortgages by an average of 0.23% according to Canstar. Major lenders such as Bankwest, ING, and Macquarie now offer fixed rates below 6.00% for owner-occupiers paying principal and interest. Notably, Macquarie Bank made the most competitive changes, dropping its 2- and 3-year fixed rates to 5.59% p.a. for borrowers with a 30% deposit—the lowest 2-year term available in the market. 2. Investor Lending Continues to Rise 📈💼 Investor lending growth is outpacing owner-occupier lending, according to new ABS figures. National home loan commitments (excluding refinancing) grew by 3.9% in July 2024 to reach $30.6 billion. Over the past year, mortgage lending has surged by 26.5%, driven by rising home prices. Of this, $11.7 billion was for investor loans—near record highs. Investor loans grew by 5.4% over the month, marking a 35.4% increase compared to July 2023. 3. Housing Inflation to Moderate 🏘️💸 The housing component of inflation, which makes up around 22% of overall inflation, has been a key driver of price growth in recent years. However, the outlook for housing inflation is improving. Strong growth in the costs of building homes and rising rents have contributed to overall inflation, but signs point to a gradual moderation in these pressures. Stay informed and let us know how these changes are impacting your financial strategies. We're here to help navigate the shifting market landscape. #FinanceUpdate #MortgageRates #InvestorLending #HousingMarket #InflationOutlook

NYCB Seeks Solutions to Mortgage Risk Amid Real Estate Pressures - New York Community Bank (NYCB) Bancorp is proactively seeking investor capital for a large portfolio of residential mortgages under its Flagstar Bank unit, amid increasing financial pressures on the regional lender. The move highlights NYCB's efforts to navigate the challenging real estate market and maintain liquidity. - The bank is exploring a synthetic securitization deal involving a portfolio of about $5 billion in home loans, a strategy aimed at offloading exposure to these loans by transferring the risk to buyers. This approach reflects the bank's innovative measures to manage credit risk amidst a landscape of rising interest rates. - Additionally, NYCB is considering the sale of a $1 billion portfolio of recreational-vehicle and marine loans. These discussions are still in early stages and subject to change, indicating the bank's comprehensive strategy to reassess and potentially divest certain assets. - These initiatives come in the wake of a surprise loss reported by NYCB, tied to deteriorating credit quality and a dividend cut that significantly impacted the bank's share price. The bank's loan-loss provision saw a dramatic increase in the fourth quarter, signaling the depth of the challenges it faces. - NYCB's executive chairman, Alessandro DiNello, emphasized the bank's commitment to building capital, including the possibility of selling loans and reducing its commercial real estate concentration. This statement underscores the bank's determination to stabilize its financial position. - The bank's shares continued to suffer, hitting a 27-year low, despite reassurances about deposit increases. This reflects ongoing investor concerns about NYCB's exposure to commercial real estate and the broader implications of its recent acquisition of parts of the failed Signature Bank. - The US market is gradually seeing the introduction of synthetic securitizations as banks seek innovative ways to manage capital constraints. NYCB's consideration of this and other asset sales represents a strategic response to the current economic environment. - The lender's recent downgrade to junk status by Moody’s Investors Service further complicates its situation. Moody’s highlighted "multifaceted" financial risks and governance challenges, indicating potential further downgrades if conditions worsen. This rating adjustment adds another layer of urgency to NYCB's efforts to address its financial and operational challenges. #NYCB #realestatemarket #financialstrategy #mortgage #bankingsector #creditrisk #securitization #commercialrealestate #marketanalysis

Yesterday (Mar 21st) the Competition Bureau published it’s submission in response to the Department of Finance public consultation on strengthening competition in the financial sector. In that submission it made two key recommendations to lower switching costs for consumers and meaningfully advance competition. 1) Encouraged the Department of Finance to swiftly adopt a consumer-driven banking framework that will boost competition and innovation, by challenging established providers and enabling new service providers 2) They urged policymakers to reconsider the application of the stress test at mortgage renewal for uninsured borrowers, to allow them to switch lenders and benefit from competition. Currently only ‘insured’ mortgages are allowed to switch lenders at maturity without having to re-qualify using the Stress test. Allowing ‘all’ mortgages to forgo the Stress test when switching lenders is something the Mortgage industry has been championing for over 6yrs…  Let’s hope the Competition Bureau has enough pull to make this happen