Purchase-mortgage originations are expected to increase slightly in 2018, but not enough to offset declines in refinance activity, according to industry analysts. On average, economists at Fannie Mae, Freddie Mac and the Mortgage Bankers Association project that $1.21 trillion in purchase mortgages will be originated next year, up 5.9 percent from the amount expected in 2017. “All the pieces are in place for stronger growth in 2018 and beyond,” Michael Fratantoni, the MBA’s chief economist ...
Property value estimates from traditional appraisals may have a significant amount of uncertainty behind them, but Collateral Analytics says it may have a solution that could improve the accuracy of appraisals. Loan purchasers and portfolio lenders can benefit from CA’s new tool, which can be used for strategic lending and better risk management, according to Michael Sklarz, founder and president of Collateral Analytics. “We are taking an appraisal and its accompanying information ...
Nearly half of the loans securitized by Fannie Mae, Freddie Mac and Ginnie Mae during the third quarter came from lenders’ retail platforms, a new Inside Mortgage Trends analysis shows. Correspondents generated 38.8 percent of the market and posted the highest purchase-mortgage concentration, 77.8 percent. Mortgage brokers were involved in 11.6 percent of agency business, with a relatively high 35.9 percent refinance distribution ... [Includes one data chart]
While the Department of Housing and Urban Development’s newly implemented FHA Loan Review System and its defect taxonomy has reduced lender exposure to false-claims risk, the system needs more tweaks to become fully efficient, says the Mortgage Bankers Association. While acknowledging great improvement in lender certainty and clarity regarding False Claims Act risk, the MBA wants to see “assignment-specific remedies” for each tier of defect severity. And though lenders say ...
One of the biggest takeaways for the mortgage industry in Republicans’ tax reform effort is that homeownership incentives provided by the mortgage interest deduction will be reduced significantly. Republican leaders have stressed that they don’t plan to eliminate the MID. But a near doubling of the standard deduction and other provisions included in tax reform will make the deduction worth much less, according to Leonard Burman, an institute fellow at the ...
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