“Stated” Income Commercial Real Estate Loans are Back—and Better

Prior to ’08, when commercial lenders were ramping up their sales volumes to compete for big securitization dollars, borrowers could simply state their personal and property income in lieu of revealing inferior debt-service coverage ratios. Lenders became overly comfortable relying on stated income instead of verified data, and gradually even lowered borrower credit score requirements to imprudent levels. Unfortunately, we all know how that story ended. Yet today, in 2015, the good news for borrowers and their commercial real estate agents is; “stated” commercial real estate lenders are coming back into the market, bit by bit. And the good news for all of us is: It looks like, this time, they’re doing it right.

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