Issuance is marching ahead at a steady pace, but lenders are adapting to a market where business from maturities is declining.
Banks provided 71 percent of all construction financing in 2017, according to data from Real Capital Analytics.
More than 75 percent of these mortgages have posted stable or improving cash flows since they've been underwritten.
The proposed legislation is not a “rollback” on regulations pertaining to HVCRE loans.
According to the ratings agencies, the gap between their estimated cap rates on conduit loans and those being underwritten by the market is growing.
Crapo’s legislation is largely aimed at giving small and regional banks a reprieve from regulations put in place after the 2008 financial crisis.
Foreign capital is following the broader market shift that has investors allocating more capital to commercial real estate debt.
Despite this sector’s exemplary performance, it has become increasingly difficult for developers to secure construction loans from banks.
CrediFi examined the top 20 originators of commercial real estate loans in each of these markets over the course of 2017.