Category Archives: Commercial

Industrial Property Loans Lead 1Q Increase in Commercial Volume: MBA

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Commercial and multifamily mortgage loan originations in the first quarter were up 49% year over year, according to the Mortgage Bankers Association. Originations decreased 26% from the fourth quarter of 2014.

The overall growth of commercial and multifamily lending volume in the first quarter, compared to the same time last year, was largely driven by the rise in originations for industrial and multifamily properties.

That growth included an increase in the dollar volume of loans for industrial properties of 269%; in multifamily properties, 71%; in office properties, 53%; hotel properties, 51%; and in retail property loans, 5%. Health care property loans were effectively unchanged year-over-year.

The dollar volume of loans originated for the government-sponsored enterprises increased by 306% from the first quarter in 2014.

Loans used in commercial mortgage-backed securities increased 113% and life insurance companies saw a 51% increase in loans. There was a 1% decrease in dollar volume for commercial bank portfolio loans.

First quarter 2015 originations for health care properties fell 62% compared to the fourth quarter 2014.

There was a 57% decrease in originations for retail properties from the fourth quarter 2014; 33% for hotel properties; 31% for multifamily properties; 25% decrease for office properties; and a 127% increase for industrial properties.

The dollar volume of loans for commercial bank portfolios decreased 23% from the fourth quarter of 2014 to the first quarter of 2015; loans for life insurance companies were down 18%; originations for CMBS were down 14% and loans for the GSEs were down by 13%.

Article source: http://www.nationalmortgagenews.com/news/origination/industrial-property-loans-lead-1q-increase-in-commercial-volume-mba-1050340-1.html

Title Agents Will Be Prepared for TRID: ALTA

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Most title professionals will be prepared when the Consumer Financial Protection Bureau implements its TILA-RESPA Integrated Disclosure rule on Aug. 1, according to the American Land Title Association.

TRID integrates forms required under the Truth-in-Lending Act and Real Estate Settlement Procedures Act.

A survey conducted last month by ALTA concluded that 92% of the title agents, underwriters, real estate attorneys and abstracters will be ready to implement the forms and comply with the regulation, ALTA CEO Michelle Korsmo said in a statement.

“For nearly two years, we have encouraged our members to initiate conversations with their Realtor and mortgage-lender partners to ensure the implementation of the new forms is seamless for consumers beginning Aug. 1,” she said.

“All stakeholders that participate in the transaction share the CFPB’s goal that these new disclosures help consumers better understand their terms when they buy a home or refinance their mortgage.”

For most consumer mortgages, the current Good Faith Estimate and early TIL disclosure will be replaced by a three-page Loan Estimate; the HUD-1 and final TIL disclosure by a five-page Closing Disclosure.

Among the biggest concerns of title professionals preparing for the forthcoming disclosures are collaborating with lenders and real estate agents and potential closing delays, the survey says.

A majority (87%) indicated they believe the mortgage disclosures will cause delays for estate closings for consumers due to changes at the closing table, walk-through issues, and lender and real estate agent collaboration issues, among other reasons. Only 5% don’t believe TRID will affect closings and 8% are unsure.

More than 65% of those surveyed believe the new disclosures will not progress the CFPB’s goal of helping prepare and educate consumers on the costs of buying a home. This they owe to potentially inaccurate disclosure of title insurance premiums, new forms highlighting the costs but failing to explain them and being overwhelmed by details.

Article source: http://www.nationalmortgagenews.com/news/origination/title-professionals-will-be-prepared-for-trid-alta-1050358-1.html

Mortgage Rates Climb Due to German Bund Selloff

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Conforming loan rates hit their highest levels in two months during the first week of May, according to the Freddie Mac Primary Mortgage Market Survey.

“Mortgage rates rose this week to the highest level since the week of March 12 as a selloff in German bunds helped drive U.S. Treasury yields above 2.2%,” said Freddie Mac deputy chief economist Len Kiefer in a released statement.

Thirty-year fixed-rate mortgages rose 12 basis points from last week, to 3.8%. Rates were still down 41 basis points from last year. Fifteen-year fixed-rate mortgages averaged 3.02%, up eight points from last week and down 30 points from last year.

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 2.9%, up five points from last week but down 15 from last year, while one-year Treasury-indexed adjustable-rate mortgages dipped three points, to 2.46%, from last week but up three points from the same time last year.

Article source: http://www.nationalmortgagenews.com/news/origination/mortgage-rates-climb-due-to-german-bund-selloff-1050239-1.html

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