Commercial/multifamily mortgage
originations ended the year on a very strong note, with the fourth quarter setting a new record for volume," noted Woodwell.
ASA provides premium default prevention, guarantee,
origination and disbursement services to students and the financial aid professionals who help them.
In PNCBancorp, 110TC 349 (1998), the Tax Court directly addressed the current deductibility of loan
origination costs.
Mortgage bankers'
originations for conduits increased 144 percent from the third quarter of 2004;
originations for commercial banks increased by 33 percent, and
originations for life insurance companies increased 22 percent.
The taxpayer was principally engaged in the banking business; the costs at issue consisted of the loan
origination costs, which the taxpayer deferred for financial accounting purposes pursuant to SFAS No.
The number of
origination requests received has been exceptionally high since the summer began.
Originations for Fannie Mae dropped by 13 percent,
originations for Freddie Mac fell by 47 percent,
originations for Federal Housing Administration (FHA) loans declined by 34 percent and
originations for pension funds decreased by 75 percent.
With these new record
origination volumes, 2005 is setting a pace well above anything we've seen in the past.
Since the introduction of SFAS 91 in 1988, lenders have been capitalizing loan
origination costs for financial purposes.
Continued demand for commercial mortgages--from both borrowers and lenders--is setting up 2004 to break 2003's record
origination levels," said Doug Duncan, MBA's chief economist and senior vice president.
