McCallum’s Musings on Commercial Loans

McCallum’s Musings on the Market!

• The University of Michigan’s monthly index of consumer sentiment fell 6% in March, reversing three consecutive months of gains and falling to its lowest level since May 2025 in the aftermath of the volatility created by tariff announcements.
• Just yesterday…the largest sector of our economy got hit. The US services data came in with March slowing, while the prices paid/cost component surging to 70.7! The highest since October 2022 and the biggest monthly jump in more than 13 years. Moreover, employment in the sector is now in contraction.
• Large fiscal deficits force more borrowing>>>> More borrowing means more Treasury supply >>>> More supply means more pressure on rates, more refinancing stress, and more dependence on intervention >>>> More intervention means more currency debasement risk >>>> currency debasement risk leads to higher prices and lower purchasing power.

New Correspondent Program Announcement: With the SBA’s eligibility limitation to citizens, many business owners cannot access credit. Up to 80% LTV with 20% owner-occupancy requirement for conventional loan program for general purpose properties. 30 fully amortized loan; six 5yr fixed interest rate loan periods. This is eligible for US Citizens and LPR’s (green card holders), we hope to fill a gap left by the changes in the SBA policy.

McCallum’s Music Pick: Avatar – Smells Like a Freak Show

Case Study

• Dental building – Northern California
• $570,000
• 25 year fully amortized loan term
• 75% purchase financing

John McCallum, Borrower’s Advocate, completed this $570,000 purchase loan transaction for a dentist seeking to start a new dental practice. The buyer had a 25% down payment position; however, there were no historical operating statements available for the business operations. To accomplish the building acquisition, John sourced a lender willing to rely upon projected business operations to accomplish the 75% LTV purchase financing requirement. John McCallum closed the loan to provide the owner an opportunity to accomplish their dream of a Dental Practice at their owner building.

Featured Article

U.S. OFFICE LEASING POSTS STRONGEST QUARTERLY PERFORMANCE OF POST-PANDEMIC ERA: Surge in small deals drives leasing volume even as market recovery remains varied.