Richard Bouchner, managing director of the Commodore Property Group

From the February issue:
Everyone in the real estate industry knows that the price of admission for a mortgage has gone up. And just about everyone agrees there’s good reason for that, given that loose lending standards were largely responsible for the financial mess that plunged the economy into a recession and sent real estate into a tailspin. With the days of quick and easy jumbo loans and 100 percent financing now merely a memory, mortgage brokers have had to completely alter the way they do business. This month, The Real Deal talked to mortgage brokers and other mortgage industry professionals to find out how the industry is doing in New York City. While nearly everyone said business is up compared to a year ago, when they were dealing with the immediate aftermath of the Lehman debacle, new Federal guidelines designed to protect borrowers and inject more transparency into the system have slowed down the process of securing a mortgage. And the relationship between banks and mortgage brokers is strained, with fewer banks offering fewer products. As one mortgage broker said: “It’s all cookie-cutter stuff; not every borrower fits into a box neatly.” For more on which buyers and buildings are fueling mortgage activity in New York, what kinds of mortgages are being financed and the new standards mortgage brokers are dealing with, we turn to our panel of experts.  [more]

Steve Kliegerman, executive director of development marketing at Halstead Property, and Central Park Plaza at 1851 Adam Clayton Powell Boulevard in Harlem, which just gained FHA approval today

A temporary move to ease lending standards by the Federal Housing Administration has fueled hopes of a turnaround in New York’s residential housing market, as condominium developers have struggled to get financing for new buyers and fill thousands of unsold units.

Earlier this month, the agency announced that starting Dec. 7, it will lower the FHA pre-sale requirements for new condo buildings to 30 percent from 50 percent. In addition, the FHA will guarantee loans for 50 percent of a condo building’s units if the project meets strict underwriting standards.

“It completely changes the face of the New York City real estate market,” said Gary Goldman, president of National Condo Advisors, a Westchester-based firm that helps developers qualify for end-loan financing. “Now all these new construction buildings have a shot at getting some units closed.” [more]

Mortgages remain elusive for house hunters in New York and as a result,
many buyers are working with more than one lender. Developers are also
lining up additional lenders to help buyers obtain financing. The developments come in response to the tough credit environment.
Banks have tightened the availability of home loans to buyers and at
the same time, many are reluctant to write mortgages for some new
buildings where only a small percentage of apartments have been sold. As attorneys for buyers are putting mortgage contingency clauses in
contracts, attorneys for sellers are directing buyers to apply for
financing at more than one bank or go to a mortgage broker, said Daniel
Berman, an executive vice president with Bellmarc Realty, who has seen
the scenario play out in a few recent deals.
[more]