Banker & Tradesman: April 13, 2020

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THE FINANCIAL SERVICES AND REAL ESTATE WEEKLY FOR MASSACHUSETTS BY THE NUMBERS

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County close-up: Bristol Spotlight: Somerset

IN PERSON

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With hundreds of thousands out of work in Massachusetts, the executive director of Boston-based nonprofit Commonwealth, Timothy Flacke, sees ways for banks and credit unions to help build financial security, even during a crisis.

WEEK OF MONDAY, APRIL 13, 2020

BANKING & LENDING BY THE NUMBERS

Many landlords are agreeing to defer restaurants’ rent payments for up to 180 days as an alternative to evicting them and trying to re-tenant the spaces, as the industry faces an uncertain path forward.

SOLD SHORT

250 Mechanics Cooperative Bank received over 250 loan applications in four days. See Diane McLaughlin’s story on page 9. Source: Mechanics Cooperative Bank

80 percent Regulations on home appraisals affect nearly 80 percent of the loan pipeline in Massachusetts. See James Sanna’s story on page 10. Source: Mass. Mortgage Bankers Association

$349 billion The PPP loan program is capitalized at $349 billion. See Diane McLaughlin’s story on page 9. Source: Small Business Administration

Restaurants Weather the Storm

60 days Cape Cod Five staff will need 60 days to clear a refi loan backlog. See James Sanna’s story on page 10. Source: Cape Cod Five

TRY TO

$0 Metro Credit Union has made no PPP loans. See Diane McLaughlin’s story on page 9. Source: Metro Credit Union

$684 million U.S. Bank provided the $684 million mortgage for 245 Summer St. See Week on the Web on page 2. Source: The Warren Group

30 percent Cape Cod Five could see an up to 30 percent fallout rate in their refi pipeline. See James Sanna’s story on page 10. Source: Cape Cod Five

3.99 percent Eastern Bank is offering 27-month personal loans at 3.99 percent interest. See Week on the Web on page 2. Source: Eastern Bank

Unless otherwise noted, all data is sourced from The Warren Group’s Mortgage Market Share Module, Loan Originator Module, Statistics Module and/or proprietary database. For more information please visit www.thewarrengroup.com/business/ datasolutions.

Lenders, Landlords and Merchants Have Shared Interests BY STEVE ADAMS BANKER & TRADESMAN STAFF

M

assachusetts restaurants face a menu of unappetizing choices as they seek to stabilize their finances to offset steep declines in revenues from indoor dining bans. Federal stimulus programs aimed at small businesses don’t directly address the indus-

try’s woes during the COVID-19 pandemic, so tenants are working with landlords on voluntary rent relief. Landlords, in turn, are seeking flexibility from their mortgage lenders. The alternative, industry sources say, is a collapse of the real estate model that supports an industry that recently employed an estimated 350,000 people in Massachusetts, or 9 percent of the state’s labor force. Many landlords are deferring rent for up to 120 days, in some cases adding the payments to the end of the lease, as a strategy to retain restaurant tenants, said Todd Smith,

president of Boston-based restaurant brokerage Corbett Restaurant Group. “The big institutional landlords seem to have a plan to defer the rent,” Smith said. “It’ll be very expensive to replace that tenant, hire a broker and let the space sit empty.” As the industry struggles to find a path forward, many restaurants won’t survive and landlords will have to offer those that do new lease options reflecting a painfully slow ramp-up once dining restrictions are lifted, said Peter Gori, managing partner at Boston Commercial Realty Partners. Continued on Page 7

COMMERCIAL INTERESTS

CRISIS RESPONSE

Unions Offer Warnings Straight from the Front Lines of COVID-19 Battle

Technical Issues, Rushed Federal Program Stresses Staffs

Baker Makes Mistake on Construction Freeze By Scott Van Voorhis | Banker & Tradesman Columnist

Commercial Real Estate PAGE 3

Bankers Face Challenging Week as PPP Rolls Out By Diane McLaughlin | Banker & Tradesman Staff

Banking & Lending PAGE 9


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