LENDER ALERT - 10 YEAR RATES AT 7% OR UNDER

Column Financial has lowered their spreads on their 10 year deals to 320 basis points. That puts their 10 year rate right around 7%.

The minimum loan size is $5MM and they want the better quality deals but they will go to 75% loan to value and will give the borrow a 30 year amortization.

The spreads until 6 weeks ago were over 500 basis points effectively putting all securitized lenders out of the market since no one would be interested in a 10 year fixed rate over 8%.

Column Financial is one of the oldest securitized lenders and they have been one of my most active and dependable lenders. You will recall there were a few times in the past 6 months when it seemed that the securitized market was recovering…only to disappointed when the market deteriorated again. But it has now been 6 weeks of steady progress and Column is confident they can deliver. But they also understand the reluctance of many borrowers. So they are offering a risk free deal. They will sign up a loan and if they do not deliver they will refund 100% of the deposit less the cost of the 3rd party reports. This works better on straight refinance deals versus acquisition deals.

This is a very positive sign for the market. Let’s just hope it is not the “boy who cried wolf” this time.

In addition, Wells Fargo told me that their 10 year spread has reduced to 300 basis points so their 10 year fixed rate for their portfolio program is UNDER 7%.

Please call me with any questions or deals,

Neil