Mortgage brokers can help guide you to the most viable capital sources, but it never hurts to know where the money is cropping up. Banks supplied 66 percent of the total. Public equity and debt combined made up 67 percent of new capital. These fundamental shifts in financing sources have opened new possibilities for borrowers. The so-called conduit lenders, those that pool and resell loans to investors, are active in the market.
Finance companies have money to lend.
Commercial banks still lend directly to property owners, but even they now securitize many of their own loans, blurring the distinction between conduits and banks. Less active in the market, but still involved primarily with Class A properties, are insurance companies and pension funds. Offers You Can't Refuse As competition among lenders intensifies, underwriting standards are relaxing. Lenders are cutting reserve requirements, according to John Petrovski, executive vice president at Heller Real Estate Financial Services, Chicago. Actual standards on deals have loosened in the last 12 months.