Tighter lending standards foiling condo deals after Surfside collapse
U.S. residential mortgage volume rose in the second quarter while the Federal Housing Administration and reverse mortgage businesses saw declines, according to a report based on the latest data from MortgageDaily.com. Overall, residential mortgage originations increased by 6.5 percent last quarter, though volume was still 37.9 percent below last year, the report says. “Recent data indicate loan pipelines have strengthened, suggesting
third-quarter originations will come in even stronger,” said Sam Garcia, published of Mortgage Daily. “Many borrowers might see a psychological threshold being broken as fixed rates teeter below 4 percent — potentially fueling demand for more refinance activity.” Still, FHA mortgage volume declined both quarter-over-quarter and year-over-year to $71.6 billion worth of loan endorsements. During the first quarter, FHA endorsed $77.9 billion worth of loans. During the second quarter of 2009, that volume was $98.1 billion. Home equity conversion mortgages, or reverse mortgages, also declined in volume to $3.9 billion in the second quarter from last year’s $8.1 billion and the first quarter’s $5.9 billion. TRD
