Cambridge Realty Capital Reports Monthly Loan Origination Requests in May were Highest Since 2003

CHICAGO, IL--The economy may be slowing, but someone apparently forgot to tell senior housing/healthcare borrowers.

Cambridge Realty Capital Company reports reviewing 35 separate loan origination requests in May, the highest monthly total processed by the company since 2003.

“Incredibly, the dollar volume of loans processed was almost three times higher than the same month in 2010,” Cambridge Chairman Jeffrey A. Davis (top right photo) said.

In May, the dollar value of origination requests totaled $613.9 million, compared with $210.9 million in May 2010, when the company processed 25 requests.

Davis points out that lenders close a relatively small percentage of the origination requests received. But Cambridge routinely tracks this information as an indication of market directions.

“So far in 2011, we’ve processed fewer requests than last year, but this may be about to change,” he noted.

Davis said credit market restrictions have been impacting the types of loans the company can reasonably consider at this time, causing it to be more selective in the types of loans that are processed. As a result, processed loan requests through the first five months of the year are down, from 115 in 2010 to 109 this year.

The year-over-year comparison shows dollar volume is still down through the first five months of the year, from $1.7 billion in 2010 to $1.5 billion this year.

“However, demand for popular FHA-insured HUD Lean loans remains at a high level and is unlikely to trail off anytime soon. HUD is making an earnest effort to work on its high backlog of orders, and this effort has not gone unnoticed,” he added.

Contact:

Evan Washington

Phone: (312) 521-7604

Fax: (312) 357-1611

E-Mail:  ew@cambridgecap.com