The qualified-mortgage rule that takes effect in January could make it more difficult to get a home loan, and particularly a jumbo mortgage. Some lenders and buyers are looking to close their transactions before the rules kick in. The rule's debt-to-income limit of 43% could affect entrepreneurs with fluctuating income, some say. Despite the new rule, TD Bank still plans to offer the riskier interest-only jumbo mortgages, says Michael Copley, retail-lending director at the bank.
GE Capital Real Estate is stepping up lending as the commercial mortgage-backed securities market becomes more expensive. The liquidity push is timely as deals increase in commercial real estate, according to this article. The General Electric unit expects to lend about $7 billion this year in North America.
Banks in Japan are increasingly stepping in to satisfy loan demand by U.S. and European businesses. The Bank for International Settlement says Japan is steadily increasing its share of global lending, accounting for about 10%, compared with 6% shortly before Lehman Brothers Holdings collapsed in 2008.
A report from research firm Real Capital Analytics delivers a mixed bag for global commercial real estate. Activity in certain regions such as the Pacific Rim and the Americas is heating up, while others, namely Europe, the Middle East and Africa, are starting to decline. Global property sales reached $132.3 billion in the third quarter for a 22% increase in year-over-year transaction volume. At the same time, the pace of growth was actually moderated, as year-over-year gains in transaction activity dropped from 134% in the first quarter to 43% for the second quarter.