Vik Mehrotra of Venus Capital discusses
the rise of alternative lenders.
Not exact matches
The
rise in
alternative lenders has opened up access to funding that did not exist previously, but not all lending is suited to all types
of business.
So, the
rise in the use
of alternative mortgage
lenders has been a big surprise for us.
Mortgage expert Robert McLister
of ratespy.com agrees, adding, «you've seen
rising interest rates and mortgage rates, HSBC continuously undercutting the Big Banks, online and
alternative lenders offering cheaper options as well as buyers who are smarter and negotiating harder.
Regulators are watching to see how various types
of alternative debt sources function, how active they are in the current cycle and how those
lenders perform as the market cools and delinquencies
rise, notes Chandan.
These expanding opportunities are attracting
alternative competition in specialty
lenders and online platforms to the space, so to combat the
rising costs
of mezz and competitors vying for deals,
lenders are looking further into secondary, tertiary, and value - add assets.