In a recent Bloomberg article, reporter Jesse Hamilton, addressed a major issue that could impact lending practices should it pass legislature. According to the article, regulators are discussing increasing the threshold for requiring appraisals on commercial property to $400,000, from the current $250,000.
According to Bloomberg’s sources, President Donald Trump’s aggressive moves to knock down government constraints on business loans have resulted in U.S. bank regulators tentatively agreeing to ease an appraisal requirement that could help commercial real estate borrowers.
While this move could be of big help to small-business borrowers, appraisers would potentially get hurt as they might be pushed out of loans less than $400,000.
CommLoan’s loan officers have been closely monitoring the market and noticed an update in needs mid-market loans across the country.
“If this proposed legislation should pass, it would help a lot of small and mid-sized borrowers that need and deserve a speedy approval process,” said Mitch Ginsberg, CEO of CommLoan. “CommLoan is helping borrowers across the country and the ones that typically struggle the most are in rural areas where getting an appraisal done is not as efficient as in larger markets.”
“This change, would again point to what we have been trying to accomplish,” added Ginsberg. “Drive out inefficiencies and create a truly customer-centric model in the commercial lending space.”
CommLoan is the first digital marketplace that is revolutionizing commercial lending by pairing borrowers with unprecedented access to capital and concierge level service.