Saturday, July 21, 2007
Beware the final loan committee review when wanting to close your commercial real estate financing. The resale/secondary market for the conduit lenders is less attractive than what it was months ago. Recent last minute issues coming out of the final review have been less loan dollars and higher spreads. This even after giving a loan commitment with specific spreads weeks ago. This is a very unethical and crappy way to conduct their business. Buyers are stuck in this situation when they have deposits in jeopardy and exchange clocks ticking. Consumers (even shopping center buyers) have memories - as do real estate brokers..like an elephant.