Is mortgage origination data indicating housing headwinds ahead?

Written by Posted On Tuesday, 08 April 2014 03:18

This article is from the pages of the Hallmark Abstract Service, New York blog.

About a month ago an article appeared in the Hallmark Abstract Service blog asking the question of whether the housing market rally had run its post-crash course and was in fact topping out (Is the housing market heading up or rolling over? (Guest Post))?

If a topping out in the market is in fact the case, it would not be good news for anyone who participates in the real estate industry.

The fact-of-the-matter is however that, given the scope of this sector’s impact on the overall US economy, the participants are basically all of us whether homeowners, investors or renters!

The premise of the argument by our guest author in the prior article was centered around the fact that the bulk of real estate buying around the country was not being done by families looking to settle down in a home for their future lives. The historically traditional buyers who put 25% down and finance the rest in a mortgage.

Instead, the bulk of the buying was being done by investors who were not financing their purchases but instead were paying cash.

The problem with dependence on that type of buyer is of course that at some point the rise in prices make their decision to invest more difficult until prices rise to a point where the decision will be no. It will be no due to the absence of sufficient return on their investment dollars to justify the risk that they will be taking.

In an article appearing today at HousingWire, a report from Black Knight Financial Services is cited which offers data that finds mortgage originations have dropped to their lowest point in 14-years. The reason? A decline in activity by cash buyers.

The take-away? There are two basic ones.

The first is that the housing market may indeed be facing some headwinds in the near future, while the second is that by subscribing to the Hallmark Abstract Service blog (click on the Follow-tab in the lower right-hand section of the page) you will consistently be kept abreast of the important issues in real estate!


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Attorney’s and mortgage professional who have any questions about HAS or the way in which we conduct our business please contact HAS President Michael Haltman by phone at 516.741.4723 or by email at This email address is being protected from spambots. You need JavaScript enabled to view it.

For buyers of Residential or Commercial Real Estate in New York City or Long Island or for anyone refinancing and existing mortgage learn how you can  potentially save hundreds of dollars in closing costs with Hallmark Abstract Service! Click here to learn more.

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Michael Haltman

Hallmark Abstract Service provides title insurance for both residential and commercial real estate transactions in New York State.

Hallmark Abstract President Michael Haltman is also extremely involved with the combat veterans 501(c)(3) Heroes To Heroes Foundation, serving as the Board Chair.

Hallmark Abstract Service

In 2008 we opened our doors focused on two primary goals:

Number one was to be a title insurance company that would provide clients with a superior finished product that completely protects their interests for what will likely be one of the largest transactions of their lifetime.

Number two was to insure that the experience of working with Hallmark Abstract Service was as easy and seamless as possible for all parties involved in the transaction!

From the number of satisfied clients who come back to Hallmark Abstract Service time after time for their title insurance needs, the evidence bears out that we have accomplished these two goals in the past and will maintain our client centric focus far into the future!

Michael Haltman

Post 1984 MBA in Finance from the State University of New York at Albany that concentrated on the tax-exempt market, Michael became a municipal bond analyst at Shearson/Lehman Brothers tasked with following general obligation issuers on the city and state level as well as housing bonds secured by mortgage pools.

This experience at Shearson/Lehman Brothers followed by stints at PaineWebber and Citigroup provided a broad framework and understanding of the real estate and mortgage markets.

As CEO of Exeter Commercial which underwrote and funded commercial mortgage loans as a correspondent lender, title insurance played a critical role in both the underwriting and closing process.

In 2008 recognizing both an opportunity and need, Hallmark Abstract Service was born.

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