Permanent Loan Volatility Continues

There does not seem to be any end to the continued volatility with the permanent lending markets. Most of the Wall Street conduits are still basically shut down for any securitized business (except for Wells Fargo). The life insurance companies continue to cherry pick only the top deals in terms of leverage and quality. The interest rates from life companies vary depending on which one you are talking to.
Some life companies still have attractive interest rates in the low 6% range for 10 year fixed rate deals while others are in the higher 6% range or even over 7%. There are some life companies out of the market completely.
The options for a borrower looking for “normal” leverage (75%) AND non-recourse is severely limited. The life companies will be able to get to a 75% loan to value only for the highest quality and highest credit deals and only with the strongest and most experienced borrowers. For loans under $3MM, a 75% LTV will almost certainly come from a bank and have at least some level of personal recourse.
There have been 3 smaller issues of securitized pools so far this year totaling $5 billion. Each was relatively small and the B pieces were pre-sold to investors. So there is a market that is operating albeit at a much slower pace. In the most recent pool, the highest rated bonds were priced at a spread of over 300 basis points. As a comparison, at this point last year they were priced at a spread of only 30 basis points.