Time to Sharpen Risk Management Tools
As the great 20th century philosopher Yogi Berra said, “it’s tough to make predictions, especially about the future.” What lies ahead of us is fundamentally unknowable. While the impact of the new administration on affordable housing is unclear, the months ahead may be consequential. As Yogi said, we can’t see the future through the fog. […]
Year 15 Refis and Rising Long Term Rates
The current rate environment may pose challenges for affordable housing deals with maturing perm loans. Some Year 15 deals will smoothly refinance. Others may be strained. Imagine a Year 15 deal with a balloon due. The deal has been performing above breakeven but not by much. It has been running at a 1.05. Insurance and staffing costs and some PSH […]
Notes from CHC Conference in Anaheim
It was wonderful to be at the California Housing Consortium conference in Anaheim on September 7. Kudos to CHC for their great work. While the panels were engaging and the awards richly deserved, much of the benefit of attending these comes from the conversations at breaks, over coffee, and at lunch. Among my takeaways, here are […]
Credit Crunch? Call Your Banker.
So, here is a cheery headline for your Wednesday morning. From today’s Wall Street Journal: Real Estate Doom Loop Threatens America’s Banks. A key quote: “Bank’s exposure is even bigger than commonly reported. The banks are in danger of setting off a doom loop scenario where losses on the loans trigger banks to cut lending, […]