Loan Origination Requests Sky-Rocket

According to Cambridge Realty Capital Company, loan origination requests in January were more than twice as high as the number reviewed during the same month last year.

Chairman Jeffrey A. Davis said the company reviewed 39 separate loan origination requests last month, totaling $220.5 million. This compares with 16 requests totaling $140.5 million in January 2005.

“In 2005, a strong second half contributed to a record setting year for origination requests. This momentum appears to have carried over into the New Year,” he said.

Although Florida home loan lenders close a relatively small percentage of origination requests received, tracking this information is useful as an indication of current market directions.

Davis took note of the reasons behind this increase. He pointed to the recent interest rate increase as one factor. Moreover, the Fed’s tighter monetary policies are having an impact on lending activity around the country.

When possible, borrowers have been attempting to move into long-term, fixed-rate funding solutions. This refinancing activity has been evident in the Florida home loan market.