What We're Hearing

Colonial Savings F.A. of Texas says that thanks to low interest rates and the $8,000 federal tax credit for first-time homebuyers loan production is booming at its shop. Well, sort of. The company published a press release saying that during the first five months of the year residential fundings spiked 83% to 7,217 units. The comparison is to the same period in 2008 and includes loans funded by two of its units: Colonial National Mortgage and CU Members Mortgage. However, in terms of dollars, loan production actually fell in the 2009 period by 24%: $1.29 billion versus $1.67 billion which means the company is originating lower balance loans. One big question for all lenders is this: what will happen to the market when the $8,000 tax credit expires in December. Will Congress and the White House extend it? Lobbyists start your engines...