Mortgage Broker Sees Robust Activity in New Year After Record-Setting December
Friday, January 1, 2016
Eastern Union Funding reports December brought a record $500M in new deals placed under application, just for loans under $20 million, due to surge in acquisition activity
Eastern Union Funding reported placing $500 million of smaller-dollar mortgages–just for loans under $20 million–under application in December, a record amount and double what the firm averages a month. The brisk pace to end the year comes as the Federal Reserve earlier this month began its campaign of gradual interest-rate increases.
"For the past several months, we were doing almost twice our average business while we heard that many in the industry were reporting static new activity," says Ira Zlotowitz, the firm’s president and founder. "Our increase in new business reflects the continued trust the market has in our brokers and our firm's commitment to its specialized focus and lack of conflicts by being solely mortgage brokers, with an equity division."
Additionally, 45 percent of the loans in December were property purchases versus re-financing, which is well above the typical 25 percent to 30 percent. The momentum shows no signs of abating into the new year, another encouraging sign for the real estate market. Eastern Union is writing twice as many new loan applications than it has been closing in the last five months, Zlotowitz says.
“Property buyers currently on the sidelines are looking to make a move sooner to take advantage of the still low-rate environment," says Zlotowitz, who also noted that Eastern Union this summer launched an equity division to help with equity raises.
Named recently by Crain’s New York Business as one of the 50 Fastest Growing companies in New York, Eastern Union has benefited by targeting what it identifies as the under-served market of smaller owners and buyers of residential, office, retail and industrial properties. Annually, Eastern Union closes an average of $3 billion, with a market share far outpacing the industry.
Privately-owned Eastern Union Funding is headquartered in New York, and has offices in New Jersey, Maryland and Israel.
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