Real Estate Loans – Ales Bilgi Merkezi http://alesbilgimerkezi.org/ Sat, 25 Sep 2021 04:08:39 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://alesbilgimerkezi.org/wp-content/uploads/2021/06/icon-6.png Real Estate Loans – Ales Bilgi Merkezi http://alesbilgimerkezi.org/ 32 32 Mortgage and real estate news this week https://alesbilgimerkezi.org/mortgage-and-real-estate-news-this-week-2/ https://alesbilgimerkezi.org/mortgage-and-real-estate-news-this-week-2/#respond Sat, 25 Sep 2021 04:08:39 +0000 https://alesbilgimerkezi.org/mortgage-and-real-estate-news-this-week-2/

The weather is cooling down, but the real estate market remains hot – for the time being. With the Fed signaling that higher rates may be in sight, here’s what you need to know in these fading days of the real estate pandemic.

1. The Fed’s Role in the Mortgage Market

Much depends on the Fed chairman’s monthly remarks, including the amount of interest mortgage borrowers pay. Federal Reserve policies indirectly affect mortgage rates by setting loan prices for the banks themselves. And it’s not just the primary mortgage rates. Fed policy also affects rates on secondary mortgage products like home equity and HELOCs, as well as less common types of loans like ARMs. Here’s what you should know.

Read the stories on primary mortgages and other home loan products.

2. The Refi window remains open

Although mortgage rates rose slightly this week, the Fed has not signaled any imminent policy change, so borrowing costs are still close to historic lows. Take advantage of these low prices while they are still available. And take a look at our new refinancing calculator that does the work for you.

Read the story.

3. The black apartment valuation gap

Black-owned properties generally appreciate more slowly than comparable white-owned homes, which contributes to the persistent wealth gap between the races. It’s a well-documented problem and the housing industry says they are taking steps to address it.

Read the story.

4. Rent and your credit history

In an effort to make home ownership an option for more Americans, Fannie Mae now allows tenants to use their payment history as a measure of their creditworthiness. In the past, rental payments have not contributed to the tenants’ creditworthiness.

Read the story.

5. Main signs of structural problems in your home

There are three main categories of warning signs that your home is in dire need of mechanical attention. Even if you don’t have any plans to buy or sell a property anytime soon, these are good things that all homeowners and prospective buyers should look out for.

Read the story.

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So now is the time to hold BancorpSouth (BXS) shares https://alesbilgimerkezi.org/so-now-is-the-time-to-hold-bancorpsouth-bxs-shares/ https://alesbilgimerkezi.org/so-now-is-the-time-to-hold-bancorpsouth-bxs-shares/#respond Fri, 24 Sep 2021 15:49:00 +0000 https://alesbilgimerkezi.org/so-now-is-the-time-to-hold-bancorpsouth-bxs-shares/

You’re reading Entrepreneur United States, an international franchise from Entrepreneur Media. This story originally appeared on Zacks

On September 17th, we released an updated report on BancorpSouth Bank BXS. The company’s rising fee income, impressive capital raising initiatives, and inorganic growth through mergers and acquisitions (M&A) are the main driving forces. However, significant exposure to mortgage and commercial real estate loans, as well as a rising cost base, are headwinds.

– Zacks

The company’s earnings estimates for the current year and 2022 have remained unchanged for the past 30 days. It currently has a # 3 Zacks Rank (Hold).

The company’s shares are down 9.1% over the past six months, compared to the 5.5% decline in the industry.

Zacks Investment Research
Image source: Zacks Investment Research

BancorpSouth has taken steps to increase its fee income. Fee income saw an average annual growth rate (CAGR) of around 26% over the five years (2016-2020), mainly driven by higher credit and debit card revenues and an increase in deposit service fees. The rising trend continued in the first half of 2021. The company’s fee income is expected to continue to grow in the coming quarters as lower interest rates are likely to lead to higher origins and support the performance of the mortgage segment.

The company’s capital deployment plans are a consolation given the stable debt / equity position and the continuously improved performance over the past few quarters. We are encouraged by BancorpSouth’s ability to generate positive cash flows and increase shareholder value through regular dividend payments and share buybacks.

Additionally, as of June 30, 2021, the company had long-term debt of $ 4.2 million and cash and bank debt of $ 331.8 million. With a high cash balance, earnings before interest and taxes were 27.4 times the interest expense and have risen in the last few quarters. With earnings growth continuing, BancorpSouth is in an advantageous position should the economy worsen.

In addition, with a solid liquidity position, the company is well positioned to make investments through M&A. The company is on an acquisition tour and is strengthening its presence in various areas. It is expected that the transactions will continue to have a positive impact on earnings over the long term.

However, the company’s credit quality deteriorated in 2020 due to the pandemic and could remain under pressure for the period to come. Additionally, BancorpSouth’s noninterest expenses showed a declining trend in the first half of 2021 but a 3-year CAGR of 5.5% in 2020, with almost all expense components increasing, including higher staff costs. Hence, its inorganic growth and digitization efforts could drive spending even higher in the coming days.

The company has significant exposure to consumer mortgage and commercial real estate loans, which worries us about its growth prospects. As of June 30, 2021, the bank’s exposure to these loan portfolios was approximately 64% of total loans. Should there be a significant deterioration in property prices due to the pandemic-induced slowdown, it will dampen the company’s short-term profitability.

Shares to consider

The Zacks consensus estimate for TowneBankTOWN 2021’s profit has moved 4.7% north in the past 30 days. The company’s stock is up 27.2% so far this year. It currently has a Zacks rank of # 2 (Buy). You can see the full list of current Zacks # 1 (Strong Buy) Rank stocks here.

MetroCity Bankshares, Inc.MCBS stock is up 43.9% so far this year. Additionally, for the current year, the Zacks Consensus Estimate has shifted 3.1% north in the last 30 days. It currently has a Zacks rank of 2.

The Zacks consensus estimate for First Warranty Bancshares, Inc.FGBI’s FGBI 2021 earnings are up 14.9% in 60 days. The company’s share has gained 7.2% over the year to date. It currently flaunts a # 1 Zacks rank.

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BancorpSouth Bank (BXS): Free Stock Analysis Report

Towne Bank (TOWN): Free Stock Analysis Report

First Guaranty Bancshares, Inc. (FGBI): Free Stock Research Report

MetroCity Bankshares, Inc. (MCBS): Free Stock Research Report

To read this article on Zacks.com, click here.

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Realty: In the realty area, government cuts and lending rate cuts are contributing to the dynamic https://alesbilgimerkezi.org/realty-in-the-realty-area-government-cuts-and-lending-rate-cuts-are-contributing-to-the-dynamic/ https://alesbilgimerkezi.org/realty-in-the-realty-area-government-cuts-and-lending-rate-cuts-are-contributing-to-the-dynamic/#respond Fri, 24 Sep 2021 00:34:00 +0000 https://alesbilgimerkezi.org/realty-in-the-realty-area-government-cuts-and-lending-rate-cuts-are-contributing-to-the-dynamic/ Mumbai: Real money can be made in real estate these days.

Brick and mortar retail is slowly emerging from the shadow of virtual glory as stamp duty cuts and funding rates from leading lenders like HDFC, Kotak Mahindra and the State Bank of India fuel a rally in real estate stocks.

Godrej Properties, Oberoi, Puravankara and DLF were up more than 10% on Thursday, while the Nifty Realty index was up as much as 9%.

Karnataka cut its stamp duty earlier this week from 5% on properties under Rs 45 lakh to 3%. Motilal Oswal estimates that Mumbai will see 7,000 property registrations in September. The mortgage rates offered by most of the major lenders hover in the 6.5-7.0% range for 20-year home loans and are the lowest in history since 2005.

While it was initially expected that new residential properties would start from October 2021, coinciding with the start of the Christmas season, the waning of the second wave of Covid, record-low mortgage rates and strong new hires with salary growth in the IT / ITes sector prompted the developers to September to promote new housing projects.

“We expect real estate demand momentum to continue into the December quarter with the Dussehra and Diwali festivals and we expect developers to see record sales bookings in the second half of FY22, led by new launches,” said Adhidev Chattopadhyay, Analyst, ICICI Securities. “We anticipate the share of the overall Indian residential real estate market to increase from 25% in FY21 to 29% in FY24, and DLF, Oberoi Realty, Brigade Enterprises, Sunteck Realty and Mahindra Lifespaces are our top picks.”

On an aggregated basis, India’s ten largest publicly traded property developers have their consolidated net debt increased 37% to 27,400 billion 160 basis points between the quarters of March 2020 and June 2021, corporate overhead reductions of 20-40% from pre-Covid levels, operating cash surpluses, asset sales and Equity increases either through the qualified institutional placement channel or through dilution at SPV (Special Purpose Vehicle) level.

Godrej Properties shares rose 34% last week, while DLF and Sunteck Realty rose 17% and 11% respectively. The Indian real estate market is regaining the confidence of even global institutional investors and they see good opportunities in both equity and debt investments.

“The residential real estate sector is experiencing significant growth in all markets due to favorable government policies, 18 months of backlog, attractive pricing and the lowest mortgage costs ever,” said Sharad Agrawal, Executive Director – Capital Markets, Knight Frank India. “Investor interest in retail is also returning as space in most markets has fully reopened and people have started evaluating opportunities in the area again.”

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How does a commercial real estate loan work? https://alesbilgimerkezi.org/how-does-a-commercial-real-estate-loan-work/ https://alesbilgimerkezi.org/how-does-a-commercial-real-estate-loan-work/#respond Thu, 23 Sep 2021 13:18:19 +0000 https://alesbilgimerkezi.org/how-does-a-commercial-real-estate-loan-work/

NEW YORK – September 23, 2021 – (Newswire.com)

iQuanti: Commercial real estate loans are designed to help business owners purchase high yield real estate such as retail stores or office buildings. Just as home buyers can use home loans to finance new home ownership, business owners can use commercial real estate loans to obtain a mortgage on their next property.

Still, it can be difficult to find your way around commercial real estate loans. It is important to understand the different loan types available, the terms of each loan agreement, and the application criteria.

What is a Commercial Real Estate Loan?

A commercial property loan is a loan given by a lender to a business or entrepreneur for the purpose of purchasing or renovating commercial property.

Examples of these commercial properties are:

  • Shopping centers
  • Restaurants
  • office building
  • Apartment building
  • camp
  • Hotels

While home loans are often made to individuals, such as potential homeowners, commercial home loans are commonly made to companies such as corporations, partnerships, and trusts.

The types of commercial real estate lenders also vary. Common lenders are commercial banks, credit unions, and private companies. The US Small Business Administration (SBA) also offers two types of SBA loans for businesses.

What conditions apply to commercial real estate loans?

Many different factors play a role in the creation of commercial real estate loans. These terms are set based on the individual needs of the lender and the borrower.

Repayment plan

The repayment periods for commercial real estate loans are usually between five and 20 years.

However, the payback period is usually longer than the repayment period. For example, a borrower has 10 years to repay the loan, but the amortization schedule is 30 years. At the end of these 10 years, they make one final balloon payment to cover their remaining balance.

Prepayment penalties

Many commercial real estate loans come with prepayment penalties or fees that discourage borrowers from paying off their loans early.

The main types of these penalties include:

  • Basic fee for prepayment – a fixed percentage set by the lender multiplied by the current outstanding balance
  • Interest guarantee – an interest rate that the borrower must pay even after the loan has been repaid in full
  • lockout – a certain period of time during which the borrower cannot repay the loan

Loan-to-value ratio

The loan-to-value (LTV) ratio is the amount of the loan divided by the value of the property. This helps lenders determine how much money they can realistically lend to a borrower.

LTVs for commercial real estate loans are typically in the 65-80% range. That means commercial property buyers may have to put 20-30% on their property before applying for a loan.

Debt service coverage ratio

The debt service coverage ratio (DSCR) is the property’s annual net operating income divided by its annual mortgage debt payments. This helps lenders calculate their loan based on the expected income from the commercial property.

The median of the DSCR is 1.25, according to the National Association of Retailers. A DSCR of less than 1 tells lenders that the company does not have enough cash flow to cover its annual debt.

Interest and Fees

Commercial real estate loan interest rates average in the 5-7% range. However, these prices depend on many factors. For example, borrowers with lower LTVs may qualify for lower interest rates because their loans pose less risk to the lender.

Commercial real estate may also come with a number of fees payable during closure, such as:

  • Appraisal fees
  • Legal fees
  • Registration fees
  • Survey fees
  • Origination fees

How can you apply for a commercial real estate loan?

A commercial real estate lender usually considers various criteria when deciding whether to grant a loan. These factors include:

  • safety. The commercial property itself is often used as security.
  • Business credit. This includes a company’s creditworthiness, debt, and payment history.
  • Personal credit. If a business doesn’t exist long enough to have a credit history, the lender can view the business owner’s personal credit history.

It is important for business owners to understand these loan terms and criteria while searching for a commercial real estate lender and preparing for their next big financial investment.

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How does a commercial real estate loan work?

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Redwood Trust announces pricing of first mortgage-backed residential real estate securitization using blockchain-based technology https://alesbilgimerkezi.org/redwood-trust-announces-pricing-of-first-mortgage-backed-residential-real-estate-securitization-using-blockchain-based-technology/ https://alesbilgimerkezi.org/redwood-trust-announces-pricing-of-first-mortgage-backed-residential-real-estate-securitization-using-blockchain-based-technology/#respond Wed, 22 Sep 2021 20:15:00 +0000 https://alesbilgimerkezi.org/redwood-trust-announces-pricing-of-first-mortgage-backed-residential-real-estate-securitization-using-blockchain-based-technology/

Fred Matera, Managing Director and Head of Residential at Redwood Trust, said, “This addition of enhanced payment and prepayment reporting to the Sequoia (SEMT) securitization platform is the first step in bringing an entire RMBS transaction to the blockchain for speed and accuracy Distributed Ledger Technology We believe that we can dramatically increase transparency and reduce the points of friction in the life of a mortgage loan, including legal documents and contracts, due diligence, reporting and data reporting introduced for this transaction can provide better insight more often than conventionally bid in the borrower’s payment and prepayment activities. “

Mr Matera added: “Periods of heightened volume and resource constraints exacerbate the inefficiency of the entire mortgage system, which devotes a lot of time and energy to reviewing and re-validating data and work already done. Liquid Mortgage and its distributed ledger technology have the potential to solve many of these problems and enable a central data set that can be fully authenticated so that the parties involved have a clear view of the loan purchased and purchased in a much more standardized way throughout the mortgage lifecycle with a level of accuracy and transparency that exceeds current industry processes. Earlier this year, our whitepaper outlined Redwood’s vision of the innovation of technologies like blockchain to transform the mortgage system We are excited to see real applications of this technology on the Sequoia (SEMT) Platform. Today was an important step in building the infrastructure that would one day have completely digitized and tokenized mortgages. “

“We are very excited to be participating in SEMT 2021-6 as Distributed Ledger Agent (DLA) with Redwood Trust, the first DLA within a securitization,” said Ian Ferreira, Founder and Chief Executive Officer of Liquid Mortgage. “From day one, we’ve taken a practical and actionable approach to implementing distributed ledger technology using an incremental, ecosystem-centric model. Now Sequoia investors and other end users are taking advantage of the first phase of our technology through faster and more transparent credit reporting. We have a lot more to do to create a truly transparent, efficient, and cost-effective ecosystem, but our ultimate goal is to save borrowers money through technology. “

In April 2021, Redwood announced an investment in Liquid Mortgage as the third investment under the company’s RWT Horizons venture investment strategy. Today’s announcement marks the next step in the ongoing partnership between Redwood and Liquid Mortgage.

Additional resources

About Redwood Trust
Redwood Trust, Inc. (NYSE: RWT) is a specialty finance firm focused on various areas of home loan. Our operating platforms hold a unique position in the home finance value chain, providing liquidity to growing segments of the US housing market that is not served by government programs. We offer tailor-made real estate loan investments to a diverse mix of investors through our world-class securitization platforms; Sales activities for whole loans; and our publicly traded stocks. Our consolidated investment portfolio has evolved and includes a diverse mix of residential, commercial, and multi-family properties. Our goal is to provide shareholders with attractive returns through a stable and growing stream of profits and dividends, capital appreciation, and a commitment to technological innovation that enables risk-conscious scaling. Since our IPO in 1994, we have run our business through multiple cycles, building a track record of innovation, and building a world-class reputation for service and a sensible approach to credit investments. Redwood Trust is managed internally and structured as a Real Estate Investment Trust (“REIT”) for tax reasons. For more information about Redwood Trust visit our website at www.redwoodtrust.com or contact us on LinkedIn, Twitter, or Facebook.

About RWT Horizons
RWT Horizons is Redwood’s venture investment arm focused on early and mid-stage companies driving innovation in financial and real estate technology, digital infrastructure, and other related areas. Investments made through RWT Horizons are designed to support companies whose technologies are beneficial to Redwood’s broader operations, including residential and commercial credit platforms.

About liquid mortgages
Liquid Mortgage, Inc. was founded in 2018 by the former portfolio manager and trader. Ian Ferreirawho saw an opportunity to use blockchain technology in the mortgage market to increase transparency and efficiency in loans and securitisations. Liquid Mortgage is a patented digital asset and data platform designed to validate loan-level documentation, payments and related information in a timely and immutable manner. Its mission is to alleviate weaknesses and inefficiencies in the current system by introducing innovations into the post-original process. Please visit LiquidMortgage.io for more information.

CONTACT

Investor Relations
Lisa Hartmann – SVP, Head of Investor Relations
Phone: 866-269-4976
E-mail: [email protected]

Media work
Sard Verbinnen & Co
E-mail: [email protected]

Liquid mortgage
Ian Ferreira, Founder
E-mail: [email protected]

SOURCE Redwood Trust, Inc.

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Evergrande gave workers a choice: loan us cash or lose your bonus https://alesbilgimerkezi.org/evergrande-gave-workers-a-choice-loan-us-cash-or-lose-your-bonus/ https://alesbilgimerkezi.org/evergrande-gave-workers-a-choice-loan-us-cash-or-lose-your-bonus/#respond Wed, 22 Sep 2021 04:13:15 +0000 https://alesbilgimerkezi.org/evergrande-gave-workers-a-choice-loan-us-cash-or-lose-your-bonus/

When the ailing Chinese real estate giant Evergrande was starving for cash at the beginning of the year, it turned to its own employees with a strong pitch: If you wanted to keep your bonuses, you had to give Evergrande a short-term loan.

Some workers asked friends and family for money to lend the company. Others borrowed from the bank. Then, this month, Evergrande suddenly stopped paying back the loans that were packaged as high-yield investments.

Now hundreds of employees have teamed up with panicked homebuyers to reclaim their money from Evergrande and gathered outside the company’s offices across China last week to protest.

Evergrande was once China’s most prolific real estate developer and the country’s most heavily indebted company. It owes money to lenders, suppliers, and overseas investors. It owes unfinished homes to home buyers and has amassed more than $ 300 billion in unpaid bills. Evergrande has faced lawsuits from creditors and this year saw its shares lose more than 80 percent of their value.