Appraisal Institute News

Aug 26, 2020 12:30 PM

Economy Down in Q2, but Q3 Looks Better, and Housing Forecast Upgraded: Fannie Mae

The U.S. economy dropped 32.9% during the second quarter, its largest decline since the aftermath of World War II, but the third quarter should experience a significant rebound, according to commentary released Aug. 17 by Fannie Mae’s Economic and Strategic Research Group. Their expectations for home sales were revised upwards based on overall strength of the sector.

Aug 19, 2020 12:30 PM

Ability to Repay Commercial Mortgages Often Overstated: Data

Many commercial mortgage borrowers are struggling to make loan payments, but the coronavirus pandemic is only partly to blame; aggressive lending practices may have overstated borrowers’ ability to repay in 28% of the nearly 40,000 commercial mortgage loans originated between 2013-2019 and totaling $650 billion, according to a University of Texas at Austin study, research firm SSRN reported Aug. 10.

Aug 19, 2020 12:30 PM

Confidence in Survival Doubles Among Small Business Owners

Sixty-four percent of small business owners are confident they can survive under current economic conditions compared with only 34% who felt confident in April, according to the Q3 CNBC/Survey Monkey Small Business Survey, CNBC reported Aug. 11. Government relief efforts, community support and technology were cited as key reasons for the renewed optimism.

Aug 19, 2020 12:30 PM

Investors Stay Clear of Commercial Property Deals During Second Quarter: CoStar Group

Transaction volumes for commercial properties remained depressed during the second quarter as investors continued to pull back, according to analytics firm CoStar Group, Mortgage Professional America reported Aug. 10. Deals for the second quarter could be down as much as 70% compared to the same point a year ago.

Aug 12, 2020 12:30 PM

CRE Recovery on the Horizon, According to CBRE Report

Commercial real estate is expected to recover slower than the overall economy, but most sectors should see gains later this year and through next year, according to the Global Real Estate Market Outlook 2020 Mid-Year Review from real estate firm CBRE, National Real Estate Investor reported Aug 4. The industrial and multifamily sectors are expected to see the fastest recoveries.

Aug 12, 2020 12:30 PM

Banks Tightened CRE Loan Standards in Q2: Fed Survey

Lenders tightened their standards on commercial and industrial business loans to firms of all sizes amid weaker demand during the second quarter, the Federal Reserve reported Aug. 3 in its newest Senior Loan Officer Opinion Survey. The tightened standards and reduced demand also applied to construction and land development loans, nonfarm residential loans and multifamily loans.

Aug 12, 2020 12:30 PM

Multifamily Fundamentals to Slow for Remainder of the Year and Into 2021: Freddie Mac

The multifamily sector is expected to slow through the end of the year and possibly into next year, with rents decreasing 1.2% to 1.7% and vacancy rates rising as high as 7.2%, Freddie Mac reported July 31 in its Midyear Outlook Report. Freddie also noted that multifamily origination volume could plummet 20% to 40% by the end of the year.

Aug 05, 2020 12:30 PM

Federal Reserve Extends Lending Facilities Until Year-end

The Federal Reserve will extend several of its lending facilities through the end of the year due to concerns about how quickly the U.S. economy will recover from the coronavirus pandemic, Reuters reported July 28. The extensions were set to expire Sept. 30, but the Fed wants to maintain credit availability for businesses and consumers.

Aug 05, 2020 12:30 PM

Investors See New Risk in Net-lease Properties, Expect Cap Rates to Rise: Poll

Commercial real estate investors anticipate net-lease properties to become generally riskier and expect cap rates to rise because of the ongoing coronavirus pandemic, according to a poll from brokerage firm The Boulder Group, CoStar reported July 23. Forty-three percent of respondents think cap rates could rise up to 19 basis points, while 37% said they may go even higher.

Jul 29, 2020 12:30 PM

Commercial Appraisal Data Standards Released for Comment

The Mortgage Industry Standards Maintenance Organization, known as MISMO, on July 24 released for comment its proposed commercial appraisal data standards. The standards are intended to facilitate the exchange of commercial appraisal information, which is critical for underwriting and loss mitigation, between multiple industry participants. Comments are due Sept. 21.

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AI News

Economy Down in Q2, but Q3 Looks Better, and Housing Forecast Upgraded: Fannie Mae

Ability to Repay Commercial Mortgages Often Overstated: Data

Confidence in Survival Doubles Among Small Business Owners

Investors Stay Clear of Commercial Property Deals During Second Quarter: CoStar Group

CRE Recovery on the Horizon, According to CBRE Report

Banks Tightened CRE Loan Standards in Q2: Fed Survey

Multifamily Fundamentals to Slow for Remainder of the Year and Into 2021: Freddie Mac

Federal Reserve Extends Lending Facilities Until Year-end

Investors See New Risk in Net-lease Properties, Expect Cap Rates to Rise: Poll

Commercial Appraisal Data Standards Released for Comment