Magazine article Mortgage Banking

Big and Bigger

Magazine article Mortgage Banking

Big and Bigger

Article excerpt

The commercial and multifamily real estate markets just keep humming along. With the economy on simmer and plenty of global capital looking for returns, commercial real estate in this country is thriving. While there's been a bit of a reordering of favored property types (retail and hotel are out, apartments and office are in), vacancy rates and new construction appear to be well under control.

Against that backdrop, we decided to focus on a few spinoff stories that reflect just how sophisticated the entire commercial/multifamily real estate business has become. Market-leading lenders have evolved into super-lenders with divisions covering every conceivable type of real estate finance transaction. From the front end to the servicing department, the hallmarks of today's leading players are deep pockets, large cadres of specialists (on-staff or outsourced) and sophisticated technology. What niches they are not yet in--they are buying smaller players to fill.

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This ongoing consolidation trend is covered nicely by Steve Bergsman in an article called "Filling a Hole." We learn that after years of acquisitions, there are now only a few small independent mortgage bankers left. These owner/entrepreneurs are trying to bulk up to survive in a business increasingly dominated by titans. But some are increasingly toying with the idea of an exit strategy.

In this issue we also hear about how administering the insurance coverage required on commercial and multifamily properties has become an incredible, labor-intensive challenge. …

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