Cambridge Realty Capital Companies processed 267 loan origination requests in 2010 totaling $3.72 billion, or slightly fewer than last year when the company reviewed 298 loan requests totaling $4.0 billion, Chairman Jeffrey A. Davis reports.
“Loan origination request volume remained strong but Cambridge was forced by reality to be more selective in the type of loans logged into the company’s internal processing system,” he noted.
Cambridge is one of the nation’s leading senior housing/healthcare lenders, with more than $3 billion since the mid-1990s. The company is consistently ranked among the leading HUD 232 healthcare lenders in the country.
Davis said demand for HUD 232 financing was strong throughout the year and in recent months the company “has been seeing more and more conventional debt and finance activities. Also, acquisition activity continues to be active and moving forward,” he said.
“But general conditions in the capital markets have made it more difficult to obtain funding for new construction except on a selective basis. Our strategy has been to be upfront with borrowers who request our help. Some loan requests that may have logged into our system in the past are not making it into the mix at this time,” he said.
Davis points out that lenders close a relatively small percentage of loan requests received. However, he believes it’s useful to track this information as an indication of market directions.
“Although down slightly, when technical adjustments are taken into account, our numbers do, in fact, confirm reports that lending activity is increasing. But deals are being completed at very low loan-to-value ratios with more conservative underwriting guidelines,” he said, adding:
“In general, the more typical acquisition loans continue to be challenged and, for some borrowers, relationships with capital sources have been strained.”
Cambridge is the creator of The Signature Experience™, a four-step process designed to transform the traditional lender/borrower relationship and identify “ideal” capital solutions for worthy projects. The company has a national origination office in Los Angeles, and numerous correspondent and brokerage relationships nationwide.
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