A Peek Inside Successful Lending Shops

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the latest or ig i nat ion ORIGINATION se r v ic i ng Pool of 'Refinanceable' Loans Shrinking LPS' June Mortgage Monitor shows refinance opportunities are shrinking as interest rates rise. A S e c on da r y M a r k e t a na ly t ic s s mortgage rates remain on the uptick, the pool of "refinanceable" loans is dwindling, according to Lender Processing Services' (LPS) June Mortgage Monitor report. With the interest rate on the 30-year fixed-rate mortgage climbing to an average 4.46 percent as of the end of June (per Freddie Mac's data), LPS reported the number of active loans that fit broad-based refinanceable criteria dropped to 5.9 million, or 12 percent. Reports from March showed about 32 | The M Report 8.9 million active loans (20 percent) met one or more criteria to refinance. "[D]espite improved equity situations nationwide, fewer loans have refinanceable characteristics at the new rates, as many loans currently have a lower interest rate," the company explained. At the same time, the rise in mortgage rates has contributed to a drop in prepayment rates, which were down 12 percent in June—though still above a similar rate period in the last months of 2011. Commercial/ Multifamily Originations Improve in Q2 Hotel properties lead the advance in secondquarter originations. C When comparing the first half ommercial and multifamily loan originations are up of the year to the first half of last year, MBA calculated an 8 percent both quarterly and over increase in commercial/multifamily the year, according to the originations this year. Quarterly Survey of Commercial/ "The apartment market continMultifamily Mortgage Bankers ues to be the belle of the ball, with Originations released in recent multifamily mortgage originations days by the Mortgage Bankers Asrunning 31 percent ahead of last sociation (MBA). year's first-half total," Woodwell said. Originations increased by 36 Hotel property originations are percent from the first quarter to up 13 percent when the second quarter, comparing the first with the greatest six months of this increase in activity year with the first occurring among hosix months of last tel properties, which year, and industrial experienced an 89 property originations percent increase over are up 1 percent. the quarter. On the other hand, A significant office, retail, and increase in originations health care property also took place among originations are all office properties in the down, by 2 percent, second quarter, when — Jamie Woodwell, 19 percent, and 27 originations spiked MBA percent, respectively, 75 percent from the according to MBA. previous quarter. Conduits for commercial Retail property originations were mortgage-backed securities up 48 percent; industrial property (CMBS), GSEs, and commercial originations were up 44 percent; and bank portfolios all increased their multifamily properties were up 22 activity in the commercial/multipercent over the quarter. family sector over the first half of Despite a "slower start to the the year compared to the first half year, lending by life insurance of last year. companies surged in the second By loan volume, CMBS inquarter to the highest quarterly creased activity 22 percent; GSEs volume on record for that sector," increased their activity by 20 said Jamie Woodwell, MBA's VP percent, and commercial banks of commercial real estate research. increased activity by 11 percent. Life insurance companies upped Life insurance companies kept their commercial/multifamily intheir activity relatively even with vestment by 100 percent in dollar last year. volume over the quarter. "The apartment market continues to be the belle of the ball."

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