Interest Rate ImpactElevated interest rates are expected to be a significant headwind for commercial real estate investors and borrowers, impacting Arbor Realty Trust's earnings.
Loan And REO ChallengesThe increase in interest rates and the higher-for-longer rate outlook has created headwinds for ABR’s business, such as the need for additional loan modifications to manage through problem loans, lower new originations, lower agency volumes, and increasing REO activity, which will be a drag on earnings.