United Bank & Trust Blog

The start of the new year provides me with the opportunity to plan and think about the year ahead. As we continue on the path of economic recovery, I just received this interesting overview from the Mortgage Bankers Association regarding the Deloitte 2012 Commercial Real Estate Outlook.

Here are a few important observations that I would like to point out:

• Commercial real estate appears to be on a “gradual but uneven recovery.”
• Any momentum experienced in the industry during the first half of 2011 was stalled due to weak macroeconomic fundamentals, mostly involving the European debt crisis and the U.S. budget woes.
• The future of Commercial Mortgage Backed Securities (CMBS) will play a significant role in the ultimate recovery of commercial real estate.

I encourage you to read the full MBA article to learn more, and please feel free to contact me if you have any other questions or comments.

Are you tired of the new fees popping up at larger national banks? Not getting the type of service you deserve? May be it’s time to consider a new banking relationship. United Bank & Trust is extremely proud of the service and solutions we provide our clients each and every day because we continue to deliver on our promise to treat our clients differently than the big banks.

Why you should consider a community bank like United
As a community bank, United Bank & Trust has always been focused on supporting the local communities we serve. We reinvest locally deposited funds directly back into the local economy in the form of loans to local businesses, individual consumers and non-profit organizations.

How has United helped?
Already this year, United has helped 288 clients buy a new home, 301 clients refinance their mortgage and 20 clients build new homes. United has also secured 30 SBA 7a loans totaling more than $30M, the third most in the state of Michigan, helping small businesses succeed. In fact, the most recent loan secured for a client saved 60 jobs that would have been lost if our client could not have funded their revenue growth.

United’s commitment extends beyond the walls of the bank
United’s involvement extends beyond the walls of the bank into the community through individual co-worker volunteerism and company-wide support for those in need of help. In 2010, United Bank & Trust contributed $271,000 to 196 community organizations and non-profits. Our co-workers volunteered over 10,000 hours to 261 community organizations and non-profits.

So, if you are ready to make the switch to a bank that cares about its clients and your local community, contact a United banking office today or start the process online now.

Also, see what our clients have to say and how we have helped them.

I attended the annual Mortgage Bankers Association – Commercial Real Estate Finance Conference (MBA-CREF) last week in San Diego and for the first time since 2007 felt a genuine sense of optimism and enthusiasm relative to the state of the commercial real estate finance industry…albeit cautious.

According to the MBA’s Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, $110 billion of loans were originated in 2010, up 36% from 2009. Leading the way were life insurance companies with volumes 155% higher than in 2009. In addition, Fourth Quarter 2010 overall loan originations jumped 63% over the same period in 2009.

Additional reasons for optimism include:
1. Commercial Mortgage Backed Securities (CMBS) markets are poised for a comeback – 25 firms have now set up CMBS/Conduit operations and expect to originate $68 billion in new commercial real estate loans in 2011, up from only $12 billion in 2010. Although this pales in comparison to 2007’s record mark of $230 billion of CMBS originations, it represents significant head winds for liquidity in the market.
2. Life insurance companies will once again have capital available and continue to lend in 2011.
3. Government Sponsored Enterprises (GSE’s) such as Fannie Mae and Freddie Mac, along with HUD will increase deal flow this coming year.

With the fresh capital available and market enthusiasm we experienced, it generally means we are slowly returning to some form of normalcy in the commercial real estate finance industry. It could also mean competition is forming and well presented loan opportunities could experience improved loan terms (interest rates and leverage).

Negating some of the optimism was a general consensus from industry experts that 2011 could be the high water mark for distressed commercial real estate activity. Although the ratio of newly defaulted loans to resolved loans is leveling, this year could be the highest volume of distressed assets to hit the market.

For more information regarding commercial mortgage originations, please see the MBA “Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations” or contact me at jkleinschmidt@ubat.com if you have any specific questions or comments.

Bob Chapman

I was recently in Lansing representing the Michigan Banker’s Association (MBA) supporting the Hardest Hit Homeowner fund, which has been created to help consumers who are currently receiving unemployment benefits, may have fallen behind in their mortgage payments due to unforeseen circumstances such as a medical emergency, or can no longer afford their mortgage payments as a result of reduced income. This fund is designed to invest in our neighbors, friends and relatives who are struggling to work out arrangements so that they can remain in their homes. The first-come, first-serve program is expected to help 17,000 households statewide over the next 12 to 18 months.

If you – or someone you know – is currently struggling, one of the most important things that you can do is to proactively contact your mortgage provider today to discuss options.

There are many different programs out there that have been designed to help all of us get through this economic downturn. Your banks and credit unions are here to help inform you of your options so that you can make an educated decision on what is right for you and your family.

Please be careful as there are also many companies trying to take advantage and exploit those in need so it is important that you use a trusted financial advisor, such as United, to educate yourself on your options.

For more information on the Hardest Hit Homeowner Fund you can go to http://www.michigan.gov/mshda/0,1607,7-141–235359–,00.html

Charlie Chapell

Right now is a great time to take advantage of the Home Buyer Tax Credit. There has been plenty of excitement in the area as home buyers are moving back into the market. The tax credit and low interest rates help make a great opportunity for new home buyers.

To take advantage of the tax credit you will need to have a signed purchase contract by April 30^th, 2010 and close the sale by June 30^th, 2010. There are 2 tax credits available to the purchaser;

• The First Time Home Buyer Credit of up to $8,000 to first time home buyers. To qualify as a “first time home buyer” the purchaser or his/her spouse may not have owned a residence during the last 3 years.
• The second is a credit up to $6,500 for current home owners purchasing a home between November 7, 2009 and April 30^th, 2010, who currently owns or has owned a home for 5 consecutive years of the previous 8 years are eligible.  There are income limits for eligibility – $125,000 for an individual and $225,000 for joint income.

To learn more visit http://www.federalhousingtaxcredit.com or contact your local United Bank & Trust mortgage professional for further questions, information and eligibility requirements.