Cambridge: Senior Housing Loan Requests Up in May, Reaches 2003 Levels

Chicago based Cambridge Realty Capital Company said it’s seeing the number of requests by senior housing borrowers reach levels not seen since 2003.

During May, the Cambridge said it reviewed 35 different loan origination requests totaling $613.9 million, up from $210.9 million in May 2010.

“Incredibly, the dollar volume of loans processed was almost three times higher than the same month in 2010,” Cambridge Chairman Jeffrey A. Davis said.  “So far in 2011, we’ve processed fewer requests than last year, but this may be about to change.”

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Market restrictions have been impacting the types of loans it can consider, forcing the company to be more selective in the types of loans that are processed said Davis.  As a result, processed loan requests through the first five months of the year are down from 115 in 2010 to 109 this year.

The year-over-year comparison shows dollar volume is still down through the first five months of the year, from $1.7 billion in 2010 to $1.5 billion this year.

“However, demand for popular FHA-insured HUD Lean loans remains at a high level and is unlikely to trail off anytime soon. HUD is making an earnest effort to work on its high backlog of orders, and this effort has not gone unnoticed,” he added.

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SHN recently reported on HUD’s decision to increase support for its Section 232 program and the pressure from Congress to make it happen earlier this week.