The recently signed CARES Act provides a substantial package in monetary relief to the public health sector, major corporations and small businesses nationally. While many firms will secure all the assistance they need, others will need more help as the economy returns. Those firms will likely turn to bridge lending as a path forward.
In the commercial real estate market, we expect uncertainty about the long-term effects of COVID-19. Commercial lenders are focused on monitoring the performance of their assets and expect to receive new loan requests to meet cash flow needs over the next 12-24 months. Robust technology is the key to reducing risk around bridge lending in the current environment.
Bridge lenders that have automation and straight-through-processing will rise above their peers in the ability to efficiently manage a high-demand pipeline of loan closings. Lenders are primarily facing two challenges post-closing. First, firms that service bridge loans generally have not built a reliable asset management infrastructure. Second, third-party servicers of these loans are planning how fast they will be able to handle loan modifications on existing portfolios.
SS&C’s cloud-based single, integrated platform can help investors, lenders and servicers with all of the tools they need to operate in the current environment. Precision LM supports efficient loan origination, servicing, accounting, asset management and investor reporting whether you are in the office or working remotely. This solution was developed by partnering with leading firms in the commercial real estate market. Additionally, SS&C’s Loan Services group can provide lenders support with primary servicing and monitoring activity as the demand for bridge loans increases. For more information on how we can help, please contact us.
Commercial Lending, Fund Administration, Real Estate & Property Management