From the May issue: Some New York City mortgage brokers are panicked about new federal rules governing their pay, saying the changes could spell doom for the already ailing mortgage industry. Last month, the Federal Reserve Board issued new regulations dictating compensation for mortgage brokers — the middlemen between the consumer and the loan originator or bank — and loan officers, who typically work directly for the originator. The new rules are the latest effort from the Federal Reserve Board to protect consumers, but mortgage brokers in New York City and elsewhere say they are already seeing unintended consequences, in an industry hurting from the subprime mortgage crisis. [more]

From the June issue: While many potential buyers of residential real estate in New York City
are waiting on the sidelines, expecting prices to fall further, the
plunge of interest rates to historical lows has sparked an explosion in
mortgage refinancing.
“We are definitely seeing tremendous interest in refinancing,” said
Brooke Jacob, CEO of Everest Equity in Suffern, N.Y. “Anybody with an
open loan balance is trying to do it. Whether they own a unit in a
condo or a co-op, whether it’s a townhouse in an outer borough, a
single-family home, an apartment complex or any real estate, when
interest rates drop, you will see an influx of refinancing. Demand is
huge.” [more]

From the June issue: These days, one or two buyers can make or break an entire project by
helping developers reach crucial benchmarks in the selling process. In
response, sponsors are doing everything in their power to win over
these tipping-point buyers. To keep their projects on track, sponsors
at new development
buildings have started wining and dining these golden buyers, offering
them generous incentives, huge discounts and even free furniture. “I
see a pattern, where as soon as we reach 50 or 60 percent, just
to get to the sprint line, developers are willing to do just about
anything,” said Brooke Jacob, CEO of mortgage company Everest Equity. Comments

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