Banker & Tradesman, August 28, 2017

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SUBSCRIBE TODAY! VISIT WWW.TRYRERS.COM Est ab li s h e d 1 8 7 2

the

www.bankerandtradesman.com

WEEK OF MONDAY, AUGUST 28, 2017

financial

services

and

real

estate

weekly

A Publication of The Warren Group

for

massachusetts

CREInsider The

GOODBYE TO LIBOR

A SUPPLEMENT TO BANKER & TRADESMAN COLLEGE TIES

‘Making History’ In Commercial Real Estate Diversity Internship Program Just A Start BY STEVE ADAMS BANKER & TRADESMAN STAFF

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FIs Prepare For Libor’s Demise As Index Is Phased Out, Industry Uncertain About What Will Replace It

BY BRAM BERKOWITZ BANKER & TRADESMAN STAFF

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he recent decision to phase out the London Interbank Offered Rate has left banks that issue adjustable rate mortgages tied to the benchmark with plenty of uncertainty. But it is still unclear whether that uncertainty will turn into a quick headache that fades or a full-blown migraine. Banker & Tradesman spoke with several community banks in Massachusetts that have issued a significant number of ARMs in recent years, according to data compiled by The Warren Group. Some were more concerned about Libor’s imminent demise than others. But there was a consensus that ARMs are still effective products for the right borrowers, and that banks would keep issuing ARMs tied to Libor until it is phased out, or until regulators land on a new index. “It’s going to be a significant matter for us Continued on Page 8

Top Three 2016 ARM Originators In Massachusetts BANKS Bank of America First Republic Bank Cape Cod Five Cents Savings Bank

CREDIT UNIONS

Jeanne D’Arc Credit Union Metro Credit Union Digital Federal Credit Union

MORTGAGE COMPANIES

LoanDepot.com Guaranteed Rate Fairway Independent Mortgage Corp. These rankings include all loan categories and all property types. Source: The Warren Group’s Mortgage Market Share Module

CONTENTS

Banking & Lending ��������������������������������������������������� 8

Points ����������������������������������������������������������������������� 4

Classified Sections ������������������������������������������������� 11

By The Numbers ������������������������������������������������������� 6

CRE Insider ������������������������������������������������������������ B1

In Person ������������������������������������������������������������������ 7

Records Section ������������������������������������������������������ C1

SUPPLEMENT THE PROFESSIONAL

A Publication of the Associated Subcontractors of Massachusetts, Inc�

hey roamed construction sites at Boston’s newest office towers, trekked down Newbury Street filling out retail tenant maps and retrieved data on submarkets used in client briefings. For 16 minority students from area colleges, it was an eye-opening introduction to commercial real estate, an industry overlooked by many students considering career options even during a historic development boom. The 10-week diversity internship program, Commercial Real Estate Success Training (CREST), gave them a foot in the door at some of the region’s best-known developers, brokerages and construction firms. “You might say, ‘16 kids? How does that move the dial?” asked Kirk Sykes, a former chairman of the Boston Fed and a developer and architect. “It moves the dial because culturally it gives these students exposure to Continued on Page B8 COMMERCIAL INTERESTS

Boomers To Blame For Ownership Inequity The ‘Me Generation’ Protested Vietnam – And Then Affordable Housing BY SCOTT VAN VOORHIS BANKER & TRADESMAN COLUMNIST

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he American Dream of homeownership is on life support, and who’s to blame? Certainly not the Greatest Generation, which beat the Depression, trounced the Nazis and built the suburbs. Nor is it all those supposedly footloose, apartment-loving Millennials, drowning in student debt and battling to get a foothold in the dispiriting, post-Great Recession economy. And forget about blaming those erstwhile slackers, Gen X. So yes, that leaves you, Baby Boomers. Boomers spent their student days throwContinued on Page 3


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