Jeremy Wedgbury, Senior Vice President of Commercial Mortgages at First National, is today’s guest. He joins Aaron and Adam to discuss the state of commercial lending in today’s environment.
The guys talk about the recent volatile bond prices and what it means for interest rates, how lenders are responding and what we might see in the next quarter. They end off the discussion by examining how lenders look at elements of risk in the market and how property owners are making it work.
Topics covered include:
- How the mortgage market is responding to current bond price drops.
- An explanation of the yield curve and how it impacts the commercial mortgage market.
- The introduction of fifteen and twenty year term loans.
- Entering the real estate business at an inopportune time.
- The dominance of life insurance companies in the 1980s.
- Different ways that First National can structure a loan.
- The conservative Canadian approach to lending.
- The business platform of First National.
- The possibility of mortgage floor rates.
- Diversification strategies of mortgage investors.
- Market adjustments caused by current demand.
- Insatiable demand for apartments across the country.
- Supply as a solution for affordability.
- Challenges on the horizon in the retail space.
- Supporting secondary and tertiary markets effectively.
For more commercial real estate content, visit the First National Commercial Resource Centre.
More about our guest:
Jeremy Wedgbury is Senior Vice President, Commercial Mortgages at First National. He is responsible for managing the mortgage origination team nationally and oversees the credit adjudication of First National’s broad product portfolio.
Prior to joining First National, Jeremy spent 14 years working with other leading commercial mortgage lenders including Manulife Financial and Merrill Lynch Financial. He has been leading First National’s origination team for the past 15 years. From 2004 to 2015, Jeremy helped the First National mortgage origination team to achieve nearly 300 per cent growth, expanding the team to include more than 30 mortgage professionals. In 2015 alone, First National’s commercial team originated $6.2 billion in commercial loans, bringing mortgages under administration to $27 billion and making First National the largest commercial lender in Canada.