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We revisit our 10 most popular BankThink posts of 2012 based on audience page views over the last twelve months.(Image: Fotolia)
10. Multifamily Bubble on the Horizon?
Chris Terlizzi of First Niagara Bank postulates that the same low interest rates and easy credit that drove the "for sale" single-family housing market into a frenzy are now driving up prices in the multifamily rental business. Per the post: "To avoid the pitfalls of a potential bubble, lenders should be vigilant about sensitizing debt service coverage ratios to withstand reduced rents, higher interest and/or vacancy rates, and adjust their underwriting to provide a reasonable equity margin at loan maturity in order to minimize refinance risk."(Image: Thinkstock)