Origination

Mortgage application volume declined by 4% for the week ended May 27, even as the contract rate for the 30-year fixed-rate mortgage resumed its downward movement after a one week break, according to the Mortgage Bankers Association.

Mortgage lenders and consumer advocates, two lobbies usually busy opposing each other, have joined forces to urge regulators to ease up on proposed risk-retention requirements that they say will result in a credit crunch.

Fannie Mae and the Federal Housing Administration have revised a risk sharing agreement on refinancing affordable multifamily properties, allowing apartment owners to receive additional funds for renovations and upgrades that increase energy efficiency.

Two politically potent housing organizations have called on the Federal Housing Administration to relax its rule regarding condominiums.

Federal Housing Administration endorsements of single-family loans slipped 8% in April after rising 8% in March, another sign that residential production – especially the purchase money business – is hitting some headwinds.

Walter Investment Management Corp., a real estate investment trust based in Tampa, has closed on the private placement of $81 million of secured notes, the net proceeds of which will be used to fund its acquisition of St. Paul, Minn.-based GTCS Holdings LLC, the parent of Green Tree.

Grubb & Ellis Co., Santa Ana, Calif., said the exclusive period for Colony Capital LLC to negotiate a larger investment commitment in the company expired on May 29, allowing it to enter into discussions with other parties while at the same time maintaining discussions with Colony.

Refinancing waves sparked by falling interest rates have long been a mixed blessing for all involved. The consumer lowers his/her monthly payment, but often pays fees and signs mounds of paperwork. Banks reap profits from originating the new loans, and their salespeople rake in commissions.

April was the third consecutive month in which there were more cures than new defaults reported by the members of the Mortgage Insurance Cos. of America. But the month was also the worst of the year so far for primary new insurance written.

Home prices in March fell for the eighth consecutive month and reached a new low for this housing recession, according to a new reading on the Standard & Poor's/Case-Shiller house price index.