Loan requests tail off.
After a sharp rise in April, Cambridge Realty Capital Companies reports loan origination request volume trailed off in May, with 25% totaling $202,707.
"These numbers compare with 35 requests totaling $546.2 million for the same month last year and appear to represent a significant drop. However, in April, the company was reporting the highest level of monthly activity in two years," chairman Jeffrey A. Davis noted.
Through the first five months of the year the company processed 137 loan origination requests totaling $1.88 billion. "These totals are not far behind the 153 requests that totaled $1.91 billion during the same five-month period last year," he said.
Davis points out that lenders close a relatively small percentage of origination requests received. However, Cambridge tracks this information as an indication of changing market trends and directions.
"Given all the turmoil in the banking industry, it's understandable that borrowers might not be in such a euphoric mood. However, there appears to be a lot of interest in government funding programs and interim loans that bridge to more attractive, recession-proof FHA-insured government loans," he said.
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|Publication:||Real Estate Weekly|
|Article Type:||Brief article|
|Date:||Jul 15, 2009|
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