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Volume 16 | Issue 31 | Thursday, August 02, 2018

The Lede


Senate Passes Four-Month Flood Insurance Program Extension; President to Sign

Just hours before the National Flood Insurance Program was set to expire--again--the Senate approved a four-month extension that will keep the program alive through Nov. 30.


Top National News

Wells Fargo Explores Sale of Real-Estate Broker Eastdil

Wall Street Journal, July 26, 2018--Craig Karmin, Dana Mattioli, Emily Glazer (subscription)
The San Francisco bank has been sounding out private-equity firms to drum up interest in the real-estate brokerage and investment bank, sources said. Wells Fargo bought Eastdil in 1999 for an undisclosed sum in an effort to bolster its commercial real-estate-lending business.

Zillow Makes Big Move into Rental Services

HousingWire, Aug. 1, 2018--Jeremiah Jensen
Zillow is at it again, aiming to take more ground in the rental market. This week, the online real estate giant rolled out new online tools that allow renters to apply for multiple rentals with one application that includes a background check and eviction history through Checkr and credit reports through Experian.

Private Equity CRE Activity Falls In Q2, July 31, 2018--Erika Morphy
Despite the wave of public-to-private transactions the commercial real estate market has seen over the past quarter, the first half of 2018 has been marked by two consecutive quarters of decline in both the number of private equity deals announced and their aggregate value, according to new figures from Preqin.

Young People Don't Want Construction Jobs. That's a Problem for the Housing Market

Wall Street Journal, July 31, 2018--Laura Kusisto (subscription)
The construction business is having trouble attracting young job seekers. The share of workers in the sector who are 24 years old or younger has declined in 48 states since the last housing boom in 2005. Disinterest in construction work is contributing to a labor shortage that has meant fewer homes built and rising prices--possibly for years to come.

The New Housing Play: Helping Priced-Out Renters Become Long-Distance Landlords

MarketWatch, July 30, 2018--Andrea Riquier
Rather than trying to swing the purchase of an expensive home, platforms like Roofstock, HomeUnion and Investability make it possible to for people in high-cost areas to purchase, finance and manage single-family rental properties. For many investors, those investment properties are thousands of miles away, where prices are vastly cheaper, rental demand is constant, and in many cases courts and regulations tend to side with landlords, not tenants.

News and Trends

MBA Chart of the Week: Commercial/Multifamily Mortgages Intermediated to 'Non-Traditional' Lenders

The role of "non-traditional" lenders in commercial real estate finance increased significantly in 2017, but there is far more discussion about this than there is actual data.

Institutional-Quality CRE Returns Grow in 2Q

Institutional-quality commercial real estate returned 1.81 percent between April and June, up from 1.70 percent in early 2018, the National Council of Real Estate Investment Fiduciaries reported.

CMBS Delinquencies Could Decline Further

The commercial mortgage-backed securities delinquency rate is likely to fall further to finish 2018 between 2.25 percent and 2.75 percent, said Fitch Ratings, New York.

Manhattan, New Jersey Office Markets Show Strength

Manhattan's office market shook off its "sluggish" early 2018 with a strong second quarter, reported Transwestern, Houston.

Office Rents Jump in Tech Worker-Heavy Markets

Value remains a key driver when firms choose an office location, but companies are willing to pay premium rents to access the highest quality tech talent, reported CBRE, Los Angeles.

In Some Metros, Soaring Home Values Make Renting More Enticing

Nearly two-thirds of American adults own homes. But in some metro areas, renters may have an incentive to stay renters.

Commercial/Multifamily Briefs

Fannie Mae, Washington, D.C., priced its seventh Multifamily Delegated Underwriting and Servicing real estate mortgage investment conduit in 2018 totaling $717.8 million under its Fannie Mae Guaranteed Multifamily Structures program on July 18.

People in the News

JLL Appoints Taylor to Lead Healthcare Group

JLL, Chicago, named Richard Taylor head of its healthcare real estate practice.

Dealmaker of the Week

Newmark Arranges $85M for Multifamily, Medical Offices

Newmark, San Francisco, arranged $85 million in financing for industrial and medical office space in California and Arizona.

MBA News

mPowering You Summit for Women in Real Estate Finance in D.C. Oct. 13

mPowering You, the Mortgage Bankers Association's Summit for Women in Real Estate Finance, takes place Saturday, Oct. 13 at the Walter E. Washington Convention Center in Washington, D.C., ahead of the MBA Annual Convention & Expo.

About MBA Newslink

President and CEO: Robert Broeksmit, CMB

Publisher: Marcia Davies, Chief Operating Officer

Vice President of Public Affairs: John Mechem

Editor: Mike Sorohan 202/557-2855 

Editorial Director: Michael Tucker 202/557-2851 

Senior Editorial/Advertising Specialist: Lesley Hall 202/557-2856

Advertising Opportunities: Bill Farmakis 203/834-8832

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