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Arthur L Pepperman II

The Future of Commercial Lending

Tuesday, October 22, 2013 - Article by: Arthur L Pepperman II - Commercial Mortgage Solutions - Message

Here's a quick look forward to what I see in the future for commercial lending.

The powers that be in Washington D C have not solved a damn thing and kicked the can down the road until February 2014, when I believe they will again play another round of "Chicken".

Are there any adults at all in D C?

Seriously, the disruption, uncertainty and frustration that accompanied this latest round of political absurdity set back commercial lenders big time.

There were very few, if any, commercial closings so far in October due to the IRS not providing verification services necessary to a lender to close a loan and it may take them the month of November to catch up.

As I have been saying consistently, there are still far more borrowers than willing lenders in the commercial market ---- with all the borrowers competing for limited funds, so uncertainty and delays are dangerous to qualified borrowers trying to get a purchase or refinance done at today's historically low rates.

With the holidays season some coming up, any pre-underwritten loan submissions after the first week of December usually results in loan approvals pushed off until January. If at all possible, now is the time with what is left of October through November to get your paperwork together, work with me to polish your loan request in an effort to get it approved and closed before February, 2014.

Generally, if I get all your loan application information in a timely manner and you can answer inevitable questions, I can quickly pre-underwrite your loan request and if all looks good, I can typically get you an initial loan approval within a week thereafter.

Given you have a good loan proposal that will enhance your business goals, failure to get the loan application process moving swiftly now, in my opinion, may put off future closings into May/June of next year because February into March may be lost again to the politicos and completed 2013 Tax Returns will be necessary starting in April 2014.

If the above were not enough, commercial interest rates have jumped about 1/2% since the Fed first mentioned "tapering" in the late spring of 2013.

Interest rates aren't going to stay low forever, as we have seen so far. I think we have seen the bottom of the interest rate cycle and the next move is up toward historical norms of around 6% to 8%. How soon, I do not know, but rates usually react in spurts and the trend is up, so try to beat the next interest rate jump.

I have my cadre of willing and able lenders for just about every segment of the commercial market standing by, including a lender who loves blanket loans on multiple properties.

Remember my services are free and only get paid when we close your loan request.

Please do not hesitate to call me with what you want to accomplish. If you are honest and straight forward with me about your plans, qualifications and ability to get me the information I need to pre-underwrite a loan request that a lender would love, I can usually fast track your loan request, which means you could be getting your loan closed in early January, 2014.

Call me today at 860-946-6637.

Arthur L Pepperman II, CCLCBusiness Consultant & Commercial Lender

Commercial Mortgage Solutions, DBA CMS Funding37 Flanders RoadWoodbury, CT 06798860-946-6637 or 603-413-6510 or 800-381-9827866-610-7414 FaxEmail: or

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