Selma Hepp, chief economist at Cotality, shares insights on how Fed decisions, a cooling economy, and affordability concerns could shape mortgage rates and housing trends for the rest of 2025.
Read the full outlook on what’s next for borrowing costs.https://t.co/UFMyErDR6L
— Mortgage Professional America Magazine (@MPAMagazineUS) August 11, 2025
One area where T2 Capital Management has been making headway is through short-term rescue capital. Brown notes that while they have to be very careful about where they invest, there are some good opportunities available on the market.
“We love those situations,” he said. “I think we start with it by saying, obviously, we’re a for-profit organization. We want to be very intelligent with our capital deployments and make money. But we truly want to be helpful. I understand the situation where these multifamily buyers and developers, who did the development in 2020-2022 with expectations that cap rates would be much lower by now, interest rates would be much lower by now, and they would be able to exit very profitably.
“They are finding themselves in this brand new world in which many of them are upside down, and many of them have lenders that are impatient. It gets ugly really quickly. We come at it to say, not only do we want to generate a profit for T2, but we really want to be helpful.”
Case-by-case basis
This type of lending can provide opportunities for commercial mortgage brokers to help past customers who expected much different market conditions than they are now and are hopeful to keep their property.
“How can we craft a capital structure in which you, Mr. Developer, can retain ownership of your property and still hold on to the upside you hope for, but we need to resolve this problem,” Brown said. “Be it the lender that is mandated to pay off the capital partner that is saying, ‘We’ve run our course. We need to exit from this sort of investment.’ We’ve had a really good run recently in the multifamily space.”