News
NOT EVERYTHING IS BIGGER IN TEXAS
August 8, 2011
| Texans boast big belt buckles, big hair, and big attitude, but DFW?s CRE loan delinquencies rank below the national average. It's one category we'll happily let them dominate. We don't want anyone to have a complex. | |
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| Henry S. Miller Financial Services prez Roy Norwood says prior to the ?08 meltdown, delinquencies of commercial loans nationally were in the low single digits. Today, the delinquency rates nationally hover around 10% to 11%; in Texas, they're about 2% to 3% below the national average. Roy says Trepp data shows declining delinquencies in CRE loans in DFW, but some of that decline likely comes from delinquent assets being sold rather than re-worked or extended. There is a ways to go (a Texan technical term) before the market stabilizes delinquencies and values, Roy tells us. | |
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| The CMBS market for new originations has rebounded in the past 12 to 18 months but is nowhere close to 2007 which was the banner year for CMBS originations, Roy says. Despite more than 15 CMBS lenders in the market making new loans, the requirements are high, underwriting standards are stringent, and there are very few who will do bread and butter deals under $10M. Roy says interest rates are great, but accessing capital remains a struggle for most. He tells us he's been keeping cool at the House of Blues where he recently saw Grace Potter and the Nocturnals in concert. Oo la la. |
