Why a Pullback in Bank Lending Could Be an Opportunity for This Real Estate Stock
Over the past year, the economy has grappled with higher interest rates that have tightened lending conditions. The collapse of SVB Financial's Silicon Valley Bank and Signature Bank made a tight lending market even tighter.
One segment of the economy seeing this play out is commercial real estate. Investor concerns have turned to commercial real estate because small banks extend most of the loans to the sector. This pullback in funding has made it more difficult for those who are refinancing to get a loan at a reasonable interest rate.
Walker & Dunlop (NYSE: WD) is looking to take advantage of this. Walker & Dunlop is the largest multifamily housing lender and investor in the U.S., which makes up a sizable amount of the commercial real estate market. The company has struggled as property transactions come to a screeching halt. However, it has the liquidity and position to capitalize on a nearly half-trillion-dollar opportunity. Here's how.
Source Fool.com
