The Debt Exchange notes how US regulators are flagging some concern with commercial real estate investment concentrations, even as pricing shows steady demand for properties; regulators are finding bank ratios of commercial real estate loans to total risk-based-capital are approaching 300% in certain property markets (300% is possible through leverage) and loan-to-deposit ratios are approaching 100%, both flags on the risk side; the article notes that loan sales, to private investors as well as through securitizations, are an effective way to reduce these ratios. Source
R3 is making its blockchain code base publicly available, in an effort to drive standards for the technology; its "Corda" platform code will be stored starting November 30th as part of the Hyperledger open-source project, which is run by the non-profit Linux Foundation to encourage cross-industry experimentation and adoption of blockchain; R3's Chief Engineer, James Carlyle, explained, "If we have one platform with lots of products on top, then we get something that's more like the internet, where we still get innovation but we can still communicate with each other."; in related news, R3 and 12 of its bank members recently trialed Ripple's Digital Asset XRP platform for interbank cross-border payments. Source
Fundrise plans to offer a new fund that invests in the development of homes for sale in Los Angeles, California; investors in the fund will be investing in a diversified portfolio of real estate properties in development and for sale with the option to buy homes in the portfolio; investors will receive distributions from the fund's operating cash flow which will primarily be generated from the sale of homes in the fund; distributions may also be made from other sources of cash flow including structured equity or debt. Source
AdaPia D'Errico, a prominent executive and marketer in real estate crowdfunding, is departing Patch of Land; CEO Paul Deitch, who was recently brought into the company to help it mature and reorganize, bid D'Errico a fond farewell; she will continue to serve in an advisory role through 2017, while considering future options including other aspects of real estate; she is replaced by Robert Greenberg, who joined the company in August as a marketing consultant. Source
Income& has developed a new real estate investment product, the Prime-Rated Individual Mortgage-Backed Obligation (PRIMO) and is one of LendIt's finalists for the 2017 Emerging Real Estate Platform award; the product allows investors to invest in secured mortgage loans and targets yields of 6% or more; it is open for investment to accredited investors and investment advisers and the firm also has plans to offer the product to all investors. Source
LendingHome was founded in 2013 and is the second startup business founded by Matt Humphrey; the firm announced its new consumer loan mortgage product at LendIt USA 2017; since its initial launch, the business has originated over $1 billion in mortgage loans with a focus specifically on fix and flip property owners; the new product will expand the capabilities of the firm's technology by offering consumer mortgage loans to first time homebuyers; the product expansion is a natural extension of the business and talking with Forbes, Humphrey says it has been a part of the firm's plan since founding the company. Source
LendingOne has launched a lending system for fix and flip lenders in the real estate industry; according to the firm's press release, the platform provides originators with advanced technology to streamline all aspects of the loan-underwriting, closing and servicing processes; with the launch, private lenders can now utilize the LendingOne system to offer more competitive pricing for borrowers; through the system lenders can also subordinate a portion of fix and flip real estate loans. Source
CredifX will add to the firm's data services which provide data on over two million US commercial properties and $13 trillion in loans; the CredifX platform will offer a marketplace for commercial loans, providing access to financing and investing for commercial real estate borrowers, brokers and lenders; the new commercial real estate loan platform is expected to increase market competition and pricing for loans. Source
Episode 255 features Vishal Garg, the CEO and Founder of Better.com; he discusses the state of the mortgage market with...
Blend Network is a UK-based company, offering asset-backed property loans to retail, high net worth and institutional investors; officially launching loans on the site two weeks ago, the firm has raised GBP350,000 ($460,115) from a small network of investors; loans are expected to offer between eight and 15% with a minimum investment of GBP1,000 ($1,315); loans are introduced by F&P who acts as a sponsor in the P2P sector; the firm introduces borrowers to a wide variety of lenders and currently works with platforms such as ThinCats. Source