The Volatile Market Can Impact Real Estate Loan Defaults; Servicers Need to be Diligent

It has been nearly two weeks since the Federal Reserve paused its rate hikes and about a month since I moderated this panel of the cyclical nature of the real estate industry and what can be learned from it. Although we will likely not experience the high mortgage rates of some of the historical cycles, we may experience more loan defaults in the near future. Mortgage servicers and special servicers should be watching their portfolios closely and monitoring each property for signs of distress. I have been advising lenders to pay close attention to borrower financials and property conditions.