Conduit loans: Down but not out
Abstract: Like all bank funds, conduit financing is more scarce and its terms are often less flexible than during its heyday from 2005 through 2007 — but it’s still a viable alternative for healthy, diligent borrowers. This article shows how conduit loans work and what they can and can’t do. They may not be right for every development, but they’re still worth a second look for those who can live within certain constraints. And the benefits they offer — low fixed rates and flexible payment schedules — are hard to beat.