With razor-thin production margins becoming the norm this year, some originators are thinking about, or moving ahead with plans to trim the compensation levels of their most valuable asset: loan officers.
The incidence of defects in mortgage loan applications has decreased significantly in the last five years, according to First American Financial’s Loan Application Defect Index.
A strong surge of purchase-mortgage business helped lift Fannie Mae and Freddie Mac production of single-family mortgage-backed securities in May, according to a new Inside The GSEs analysis. Credit characteristics in May production were relatively unchanged, however. The two GSEs securitized $65.63 billion of single-family MBS last month, a 6.8 percent increase from April’s volume. Most of the gain came from a 23.6 percent jump in purchase-mortgage business as home buying season kicked into gear. Refinance volume was up slightly, and neither ... [Includes two data charts.]
Originations of purchase mortgages are expected to increase this year even though interest rates and home prices continue to rise. “The underlying demand for buying a home is holding up, and will continue to do so, as long as the economy is generating solid job and income growth,” said Sam Khater, chief economist at Freddie Mac.
Treasury counselor Craig Phillips advised meeting participants to assure their bosses and government affairs offices that Treasury is fully committed to the project. “If you have problems, tell them to call me,” he quipped.
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