SUBSCRIBE TODAY! VISIT WWW.TRYRERS.COM Est ab li s h e d 1 8 7 2
the
www.bankerandtradesman.com
WEEK OF MONDAY, JUNE 12, 2017
financial
services
and
real
estate
weekly
for
massachusetts
A Publication of The Warren Group BRAND BAPTISM RECORD HIGHS
AUTO LOAN BALANCES HIT RECORD HIGHS LOAN TERMS CREEP UPWARDS AND CREDIT UNIONS MAKE INROADS
A Name For A Place
AUTO LOANS BY THE NUMBERS AVERAGE CONSUMER CREDIT SCORE, NEW-CAR LOAN 1Q 2015
Developers Seek Distinct Identities
1Q 2016
715
712
BY STEVE ADAMS BANKER & TRADESMAN STAFF
I
1Q 2017
717
AVERAGE CONSUMER CREDIT SCORE, USED-CAR LOAN 1Q 2015
1Q 2016
642
645
1Q 2017
652
n a building boom of historic proportions, it’s harder than ever for developers to stand out from the crowd. It’s no longer sufficient to slap a number one or 100 in front of a street name when repositioning a tired office building or christening a new luxury high-rise. When Boston-based marketing agency KHJ Brand Activation was hired by developer Synergy Investments to rebrand five Downtown Crossing office buildings, KHJ interviewed existing tenants to gauge their perception of the properties and neighborhood. The eventual choice from a list of 25 options –“The Hive,” with an orange honeycomb-inspired logo – reflected the freewheeling culture of the tech and creative economy tenants, said Mike Panagako, a KHJ vice president who runs the company’s real estate practice. Continued on Page 9 LOBBYING THE LEGISLATURE
AVERAGE LOAN AMOUNT, NEW-CAR LOAN 1Q 2015
$28,711
1Q 2016
$30,032
1Q 2017
$30,534
BY CHRISTINA P. O’NEILL SPECIAL TO BANKER & TRADESMAN
A
uto loan balances have reached a record high, fueled by steady sales growth in the post-recession economy. And as auto prices rise, auto loan terms are getting longer. Are consumers becoming overleveraged in their car purchases? Not necessarily, say auto lenders and industry experts. Subprime auto lending, which ramped up significantly after the recession, hit the brakes last year as big banks, fearing a runup in delinquencies, pulled back and went in search of consumers with higher credit scores for both new and used vehicles, according to the most recent quarterly auto finance report from Experian, which follows trends and fiscal health in the automotive finance market. While vehicle prices continue to rise, a surge in off-lease volume is depressing vehicle value, said Melinda Zabritski, Experian’s senior director of automotive finance. Experian reported subprime auto lending reached a 10-year record low for first-quarter numbers as of first quarter 2017. Continued on Page 10
MAR Headed To Beacon Hill To Promote Housing Initiatives Some Legislative Changes Could Be A Tough Sell BY JIM MORRISON BANKER & TRADESMAN STAFF
LOAN DELINQUENCY, 30 DAYS 1Q 2015
1Q 2016
2%
2.1% 1Q 2017
1.96% SOURCE: EXPERIAN
CONTENTS
Residential ��������������������������������������������������������������� 8
SPECIAL SECTION
Points ����������������������������������������������������������������������� 4
Commercial & Industrial ������������������������������������������ 9
Top Loan Originators ���������������������������������������������� B1
By The Numbers ������������������������������������������������������� 6
Banking & Lending ������������������������������������������������� 10
In Person ������������������������������������������������������������������ 7
Classified Sections ������������������������������������������������� 11
Records Section ����������������������������������������������������� C1
T
he Massachusetts Association of Realtors (MAR) is heading to the Statehouse this week to promote its agenda aimed at increasing real estate sales across the state. There are seven items on the agenda ranging from statewide zoning reform to opposing real estate transfer taxes, but not everyone is on board with the association’s proposals. Passing Bill S. 94 is a high priority for MAR. The bill seeks to ease the production of cluster development housing, allowing in-law apartments and multifamily housing construction by right, and ease variance burdens and special permitting processes across the state. It’s currently in the Senate Joint Committee on Community Development and Small Business. The Massachusetts Municipal Association Continued on Page 8