The Chicago-based Cambridge Realty Capital Co. reviewed 35 requests made by senior housing and healthcare borrowers last month, totaling nearly $614 million. This was up from May 2010, when it processed 25 requests for less than $211 million.
“Incredibly, the dollar volume of loans processed was almost three times higher than the same month in 2010,” said Jeffrey Davis, chairman of Cambridge Realty Capital.
However, Davis said the company has processed fewer loan requests through the first five months in 2011 than last year, currently at 109, which is down six from 2010. He added that credit market restrictions have impacted the types of loans the company can select to consider for processing.
Year-over-year volume is also down this year, from $1.7 billion in 2010 to $1.5 billion in 2011.
While volumes are down year-to-year, Davis said demand for government product in this area remains strong and HUD is aware of and working to relieve a logjam affecting these loans.
“Demand for popular FHA-insured HUD Lean loans remains at a high level and is unlikely to trail off anytime soon,” Davis said. “HUD is making an earnest effort to work on its high backlog of orders, and this effort has not gone unnoticed.”
