CBRE’s Lending Momentum Index, which tracks loans originated or brokered by CBRE Capital Markets, came in at 237 for full-year 2017, showing growth of 14.5 percent.
The main concern is that demand for tax credits could diminish once institutional investors calculate the full impact from the Tax Cuts and Jobs Act.
The new proposal includes an explicit guarantee of mortgage-backed securities provided by the U.S. government through mortgage agency Ginnie Mae.
The U.S. Department of Housing and Urban Development has made it easier for property developers to access funds used by lenders underwriting FHA deals.
By lowering the corporate tax rate, the tax reform has also lowered the value of an asset sitting on the balance sheets of Fannie and Freddie.
The flow of liquidity will be tempered and reserved to the most desirable property sub-types and geographical markets.