MBA Releases 2012 Rankings of Commercial/Multifamily Mortgage Firms' Origination Volumes: News Release of the Week
Washington, DC (March 21, 2013) – Wells Fargo was the top commercial/multifamily mortgage originator in 2012, according to a set of commercial/multifamily real estate finance league tables prepared by the Mortgage Bankers Association (MBA). Other top originators include Bank of America Merrill Lynch; HFF, L.P.; PNC Real Estate; Meridian Capital Group, LLC; CBRE Capital Markets, Inc.; Prudential Mortgage Capital Company; KeyBank Real Estate Capital; Jones Lang LaSalle; Walker & Dunlop; NorthMarq Capital LLC and Berkadia.
The MBA study is the only one of its kind and presents a comprehensive set of listings of 111 different commercial/multifamily mortgage originators, their 2012 volumes and the different roles they play. The MBA report, Commercial Real Estate/Multifamily Finance Firms - Annual Origination Volumes, presents origination volumes in more than 140 categories, including by role, by investor group, by property type, by financing structure type, and by the location of the originating office.
The report is available at: http://store.mortgagebankers.org/ProductDetail.aspx?product_code=EC6-300033-RP-I
Highlights of the listing include:
Ten different companies were at the top of the 11 lists reporting total originations by investor groups:
• Wells Fargo Bank was the top originator for commercial mortgage-backed securities (CMBS); and other investors,
• Bank of America Merrill Lynch was the top originator for commercial bank loans,
• MetLife Real Estate Investors for life insurance companies,
• Wells Fargo and Walker & Dunlop were separated by just $8 million as the top originators of loans for Fannie Mae,
• CBRE Capital Markets Inc. was the top originator for Freddie Mac,
• Red Mortgage Capital, LLC was the top originator for FHA/Ginnie Mae,
• TIAA-CREF was the top originator for pension funds,
• HFF, L.P. was the top originator for credit companies,
• KeyBank Real Estate Capital was the top originator for REITS, Mortgage REITS, Investment Funds, and
• Cohen Financial was the top originator for specialty finance.
Firms with the largest dollar volume of loans that were originated not for their own investment portfolios, but rather for third parties in 2012 were Wells Fargo, HFF, Meridian Capital Group, CBRE Capital Markets, and PNC Real Estate.
The top five lenders in 2012 were Wells Fargo, Bank of America Merrill Lynch, PNC Real Estate, Prudential Mortgage Capital Company, and KeyBank Real Estate Capital.
A copy of the results is available for sale through MBA's Online Store at:
Home Builders Look Forward to Getting Construction Loans for New Home Projects as New Bipartisan Bill Introduced in Congress
A new bill is making its way through the House of Representatives right now that may meet with success up in Congress since it's a bipartisan effort: introduced yesterday, HR 1255 just may become law this year. (An identical version of this proposal failed to become law as HR1755 last year.)
Home Construction Lending Regulatory Improvement Act of 2013
Which is good news for home builders around the country, because the proposed "The Home Construction Lending Regulatory Improvement Act of 2013" aims to help home builders get credit for their residential developments.
What will HR 1255 do?
Right now, federal regulations are seen as thwarting home builders in their efforts to get financing to go forward with new projects. As a result, in March 2013 we have a small number of new homes to offer buyers while builders are not able to get new construction loans to build more new houses because banks cannot loan them money.
If passed, this new law means American home builders would be able to get credit in order to build their projects much easier than they can right now. How? Among other things:
- The new law would free qualified lenders with real estate loans making up 100% of their capital to make new real estate loans to home builders.
- It would end the ability of the federal government to block a home builder from getting a loan on a project from a qualified lender.
- It would block federal agencies from forcing a lender to call in a home builder's real estate loan if it's in good standing.
- If the collateral on a builder's loan has lost value, a builder in good standing on its loan would be able to work with the lender to maximize the situation through workouts, etc.
The National Association of Home Builders issued a release yesterday applauding this proposed law. From the NAHB:
“We commend Reps. Miller and McCarthy for acting to remove a major impediment to the housing recovery by promoting legislation that will enable home builders to obtain construction loans in order to put construction crews back to work and to meet rising demand across much of the nation for new homes,” said Rick Judson, chairman of the National Association of Home Builders (NAHB) and a home builder from Charlotte, N.C.
You can read the full text of HR 1255 online soon (it was not available today), as well as track its progress through the House and Senate.
Diabetes Research Institute News Release: BioHub Mini Organ for Restoring Natural Insulin Production in Diabetes Type 1
New platform mimics native pancreas, contains real cells to normalize blood sugar in real time
Miami, FL – March 5, 2013 -- Scientists from the Diabetes Research Institute (DRI) at the University of Miami are taking a quantum leap toward a biological cure for diabetes by unveiling the DRI BioHub, a bioengineered “mini organ” that contains lifesaving insulin-producing cells that can sense blood sugar and release the precise amount of insulin needed in real time. The BioHub platform mimics the native pancreas and brings the promise of restoring natural insulin production and normalizing blood sugar levels in millions living with diabetes one step closer to reality.
The DRI’s research focus has been on developing a biological cure for diabetes by replacing the insulin-producing islets cells that have been mistakenly destroyed by the immune system in those with type 1 diabetes. Clinical trials have already shown that people with long-standing diabetes can achieve insulin independence after receiving infusions of islet cells from a donor organ. Some study patients continue to be insulin free for more than a decade post transplant.
However, islet transplantation has been limited to only the most severe cases of diabetes; several challenges still remain before the strategy can be offered to all who can benefit. The existing hurdles to be overcome include the need for anti-rejection drugs that patients must take for life, the eventual need for a plentiful supply of insulin-producing cells for transplant, and the identification of an optimal site within the body to house the new cells. The BioHub is a platform that addresses these challenges by drawing on recent developments in bioengineering, immunology, and decades of transplantation expertise.
Prior to their destruction by the immune system in type 1 diabetes, healthy islets thrive inside the pancreas, where they have sufficient oxygen, adequate space, and all the nutrients needed to perform the demanding job of normalizing blood sugar levels. The BioHub attempts to closely replicate the cells’ natural environment and allows scientists to fine tune these cellular needs within the transplant site as never before.
“The progress in islet transplantation has been incremental and has allowed us to get to this important juncture. The BioHub gives us a tool to combine all we’ve learned through the years of clinical testing and take the next leap forward. I am confident that this approach could move cellular therapies and biological replacement strategies for the cure of diabetes to our final goal,” says Camillo Ricordi M.D., Stacy Joy Goodman professor of surgery and director of the Diabetes Research Institute.
Among the platforms being tested for a BioHub is a porous, sponge-like material approximately the size of a quarter that is compatible with the human body. Islet cells are gently seeded on this protective platform, allowing cells to nestle within the individual pores. Researchers are also testing the use of more natural containers, such as a patient’s own vein, that can be tied off to create a "venous sac" complete with its own pre-existing vascular supply. In addition to housing transplanted insulin-producing cells, a BioHub will also allow scientists to improve upon Mother Nature perhaps by enhancing the immediate transplant environment with additional oxygen, specific types of “helper” cells or other agents to promote the cells’ long-term survival and function. Additionally, a BioHub platform can be used to house not just islets, but any future insulin-producing cell type that scientists create.
“The development of a mini organ would mimic the native pancreas and restore the natural metabolic function of insulin release in immediate response to blood sugar levels-something currently unavailable to patients with diabetes,” said Jay Skyler, M.D., deputy director of clinical research and academic programs at the DRI.
“If we can identify an optimal place within the body to place a BioHub, then I believe this disease is totally reversible, which has been the DRI’s ultimate goal since our inception,” adds Luca Inverardi, M.D., deputy director of translational research.
The components that comprise the BioHub are in various stages of development and testing, with pre-clinical trials currently underway. Research on the DRI BioHub platform is supported through numerous sources, including but not limited to the Diabetes Research Institute Foundation, JDRF, The Leona M. and Harry B. Helmsley Charitable Trust, National Institutes of Health, NIH Small Business Innovation Research (SBIR), University of Miami, pharmaceutical companies, both foreign and domestic, and additional corporate and philanthropic partners. For more information on the development of the BioHub, visit www.DiabetesResearch.org/BioHub.
About the Diabetes Research Institute
The Diabetes Research Institute leads the world in cure-focused research. As the largest and most comprehensive research center dedicated to curing diabetes, the DRI is aggressively working to shrink the timeline toward the discovery of a biological cure for this disease.
The DRI has made significant contributions to the field of diabetes, pioneering many of the techniques used in diabetes centers around the world. Having already shown that diabetes can be reversed through islet transplantation, the DRI is building upon these promising outcomes by bridging cell-based therapies with emerging technologies. The DRI also collaborates with other leading researchers worldwide to develop and test new approaches to restore natural insulin production.
The Diabetes Research Institute was created for one reason – to cure diabetes – which is and will continue to be its singular focus until that goal is reached. For the millions of people affected by diabetes, the DRI is the best hope for a cure. For more information, visit DiabetesResearch.org.
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Investing in REITs: Future of Real Estate Investment Trusts Remains Uncertain as Motley Fool Ranks Top 25 REITs in March 2013
We've monitored the growing interest in Real Estate Investment Trusts for awhile now, both for investment interest in Florida and REITs impact on the Florida economy, as well as the growth of REITs around the country as a whole. For details, see:
- Critics of Single Family REITs: They See Much Money to be Made, But Distrust Benefits In the Long Run; and
- More on Single Family Rental REITS: Is Investing in Florida's Distressed Single Family Housing The Next Big Thing? Maybe.
By October 2012, experts like Maxwell Drever were opining that the Florida real estate market was "terrific" and that Drever was planning on investing significantly in Florida within the short term -- to the tune of $100 million. Drever will do so via Concierge Asset Management, which he helms as its CEO; CAM focuses on three kinds of real estate investment now -- one of those three are REITs.
Real Estate Investment Trusts Are Bringing In Double-Digit Returns to REIT Investors
American Capital Agency (for details, click above image) returned a dividend yield of 15.60% according to Motley Fool's study.
Of course, the investor who gets that REIT dividend must report that dividend at the higher tax rate (FIT rate). Who's gonna get dividends? Motley Fool provides a list of the 25 highest-yielding REITs that have a market cap of $1 billion+. The top five are:
- American Capital Agency
- ARMOUR Residential REIT
- American Capital Mortgage Investment
- Annaly Capital Management
- Two Harbors Investment
With yields ranging from 12.6 at Two Harbors and 15.20 at American Capital Agency, those are very tempting investments, indeed. Time bombs? Bigger question for real estate investors to answer.
RealtyTrac has issued its analysis of distressed residential sales across the United States, and state by state, in 2012 and the news shows that almost half these sales involved some kind of distressed property.
Overall, the RealtyTrac analysis found almost a million homes either in the foreclosure process or were already REO (owned by the bank) were sold in 2012 (sales of 947,995 properties), and these amounted to 21% of all foreclosure-related residential real estate sales nationally.
This sounds bad, and it's definitely not good; however, consider that this percentage was much higher, at 28%, two years ago.
Non-foreclosure short sales made up 22% of 2012's residential home sales. Take this number and add it with the earlier tally, and the year's percentage of sales that involved distressed properties works out to 43%.
“Although foreclosure-related sales represent a shrinking share of total sales, primarily because of fewer bank-owned purchases, distressed sales are still a disproportionately high portion of the overall housing market,” said Daren Blomquist, vice president of RealtyTrac. “And while distressed properties — whether bank-owned, pre-foreclosure or short sales not in foreclosure — are still selling at a significant discount compared to non-distressed properties, average distressed property prices are increasing in many markets thanks to strong demand and limited inventory.”
Also from the report are the following findings:
- In Florida (and 11 other states), there were less REO sales than there were pre-foreclosure sales.
- Florida saw an increase in pre-foreclosure sales in 2012.
- Florida was one of the states with the largest number of non-foreclosure short sales in 2012, tying with Michigan and Nevada for the number one spot (each at 33%).
- Foreclosure-related sales were 25% of Florida's total residential sales in 2012.
New Video from Diabetes Research Institute: Explaining Research to Cure Diabetes in Easy to Understand Terms
International Interest Grows in Florida Real Estate Development: Currencies, Culture Work Together to Grow Foreign Interest in Local Construction
Currency devaluations in other nations are a big factor, but not the only factor, in growing international interest in South Florida real estate development. Consider these recent monetary events:
Venezuelan Bolivar 6.3:1
In Venezuela, for example, the Venezuela bolivar has been devalued 5 times since 2004 and in February 2013, the bolivar fell to 6.3 bolivars to 1 U.S. dollar. What happens now, after the recent death of Hugo Chavez, remains an issue: Chavez ordered the February devaluation to combat a growing budget deficit in his country.
In 2001, Argentina devalued its currency as part of an overall economic plan to avoid bank runs and other big, bad things from happening in an economic situation that many are currently comparing to what Greece is experiencing today. The Argentine plan, called the Corralito, devalued the peso and by 2002, it had fallen from the fixed rate of 1 peso to 1 U.S. dollar to an exchange of 4 pesos to 1 dollar.
Brazilian Real 2:1
Meanwhile, in Brazil, economists are looking at the Brazilian Real as being akin to the Australian dollar as being overvalued and at least one leading analyst is concerned that this means big trouble for Brazil in 2014 unless something is done quickly in Brazilian currency policy. Right now, the Brazilian real has fallen from a high in 2011 to a present exchange of 2 reals to 1 U.S. dollar.
Latin American Economies Fluctuations Provide Incentive for Florida Builders
Currency exchange rates, and their correlated inflation cycles, are just a few examples of how the national economies in Central America and South America are fluctuating in ways that are influencing land developers in those countries to look elsewhere to build.
Like South Florida.
As we've discussed in the past, there has been growing interest over the past few years of international investors in Florida real estate developments. Consider our past posts for details:
- Mexican Investors Doing Real Estate Deals in Florida is Not a Surprising Trend
- Foreign Investors Making More and More Real Estate Deals in Florida: A Trend That Should Continue into 2011
However, as covered by Reuters this week, more and more foreign development is happening in Miami and the rest of South Florida. From their coverage, the following examples:
- Argentine developer Jose Luis Melo and the Melo Group real estate company are building a 17-story, 98 unit condo tower on a $1.4 million parcel of land here in Miami;
- Latin American developers are tied to around 30% of newly announced South Florida residential projects; and
- Consultatio, one of Argentina's biggest real estate developers, is developing two sites in Miami. One has already begun: a 154 unit condo tower in Key Biscayne. They had purchased the land for another big project in a huge deal (one of the biggest last year) for Miami Beach, but the company has yet to break ground on that Bal Harbour tract.
Mortgage Bankers Association Report: Foreign Interest in US Real Estate Growing - News Release of the Week
As discussion continues this week on the potential impact of Hugo Chavez's demise on the exodus of Venezuelans to South Florida, the Mortgage Bankers Association has just released a report on housing demand of foreign nationals here in the United States, our news release of the week:
WASHINGTON, DC (March 6, 2013) – Homeownership and rental demand of foreign-born households will continue to increase as growing numbers of immigrants settle longer in the United States, according to a new report sponsored by the Mortgage Bankers Association’s (MBA) Research Institute for Housing America (RIHA).
The report entitled 'Immigrant Contributions to Housing Demand in the United States: A Comparison of Recent Decades and Projections to 2020 for the States and Nation,' constructs a demographic-based projection through 2020 of the growth in homeowner and renter households headed by immigrants in the states and regions of the nation. The report was prepared by Professor Dowell Myers and Senior Research Associate John Pitkin of the Population Dynamics Research Group at the University of Southern California School of Policy, Planning, and Development and sponsored by RIHA, MBA’s independent research foundation.
Key findings from the study include:
• The volume of growth in foreign-born homeowners has increased each decade, rising from 0.8 million added immigrant homeowners in the United States during 1980¬-1990, to 2.1 million added in 1990–2000, to 2.4 million added in 2000–2010, and is projected to rise further to 2.8 million in growth in the current decade (2010–2020).
• Foreign-born ownership demand comprised the majority of all growth in homeownership in the established gateway states of California and New York. From 2000–2010 immigrants accounted for 82.2 percent and 65.1 percent, respectively, of the growth in homeowners in those states. In that decade immigrants also accounted for the major share of net growth in owner households in Illinois, New Jersey, Pennsylvania, Massachusetts, Ohio and Michigan.
• Aggregate increases in foreign-born renter households peaked in the 1990–2000 decade at 2.3 million, slowed to a net of 1.6 million in 2000–2010, and are projected to be 1.3 million in the current decade.
• Between 2010–2020, immigrants nationwide are projected to account for 32.2 percent of the growth in all households, including 35.7 percent growth in homeowners and 26.4 percent growth in renter households.
• Between 2010–2020,foreign-born ownership demand is projected to remain a majority of the growth in six states: California, New York, New Jersey, Massachusetts, Connecticut and Michigan.
• Foreign-born homeownership demand rose most dramatically in the newer destination states. For example, in Georgia and North Carolina, immigrants accounted for 34.1 percent and 24.8 percent respectively, from 2000–2010, nearly triple immigrants’ shares of homeowner growth of the 1990s in those states.
• Despite the projected rise in immigrant housing demand, the immigrant share of all demand growth is somewhat reduced in the current decade as compared to the last, because a larger increase is projected among native-born homebuyers. The combined projected growth of nearly 8 million added homeowners is much greater than the 5.1 million growth of the last decade.
• In the current decade, foreign-born renters comprise over one third of projected total growth in seven states: California, Washington, D.C. metro area, New York, New Jersey, Massachusetts, Connecticut and Illinois.
“Immigrants are an important and growing source of demand that has bolstered housing markets in recent decades,” said Professor Dowell Myers of the Population Dynamics Research Group at the University of Southern California. “Growth in housing demand in recent decades has been more stable among foreign-born than native-born households. This is because increases in native-born demand have been subject to large swings in the size of cohorts reaching ages 25 to 34, the most common age of entry to the housing market. In contrast, inflows of new immigrants have not varied widely in recent decades, and in addition the strong upward mobility of prior immigrants, has led to continued increases in aggregate demand for home ownership.”
“Rising numbers of foreign-born households are driven by the continued increases in homeownership rates achieved as immigrants settle longer in the United States. For example, among the cohort of Hispanics who arrived in the United States during the 1980s, homeownership rose from just above 15 percent in 1990 to nearly 53 percent in 2010 and is projected to rise to above 61 percent in 2020 when the cohort will have resided more than 30 years in the United States,” said John Pitkin Senior Research Associate of the Population Dynamics Research Group at the University of Southern California.
“As the housing market continues its recovery, it is important to understand the demographic trends which are likely to impact housing demand in the years ahead,” said Michael Fratantoni, RIHA’s Executive Director. “This study provides information for lenders, builders, and policymakers regarding the future shape of housing demand, which the authors clearly show will be substantially impacted by the housing choices of foreign-born households, whether they are renters or homeowners.”
To read the report, click on the italicized title, above; the Executive Summary can be read here.