Refis are poised to increase and MSR values will decline as interest rates decline. United Wholesale Mortgage is prepared for the moment, having sold off a significant amount of MSRs earlier this year.

Lenders and servicers have made significant investments in recapture capabilities in recent years for when interest rates decline and refinancing takes flight.

Certain mortgage companies are starting to feel bullish about lower interest rates, predicting better times ahead and more hiring by lenders. So far this year, personnel counts at nonbank mortgage companies have been weak, in aggregate, but loan brokers are adding to their ranks.

Senate fails to move tax bill, which included changes to LIHTC; GSEs, FHA extend compliance deadline for ROV requirements; Treasury pushes FHLBanks on affordable housing; Morningstar concerned that market sell-off will become a self-fulfilling prophecy; loanDepot sets money aside for settlement related to a cyberattack.

Second-quarter acquisitions increased at the government-sponsored enterprises, but profits remained stable as credit reserves shifted.

Some lenders are ramping up hiring in anticipation of a cut in interest rates later this year. However, some observers don’t believe a rate cut will boost originations enough to warrant rising headcounts.

FHFA hosted a symposium on improving the relationship between the FHLBanks and CDFIs.

Mortgage production at the midway point was up a scant 4.1% compared with the first half of 2023. Originations increased sharply on a sequential basis in the second quarter due to a seasonal trend. (Includes two data tables.)

Interest rates on mortgages declined in May and June but demand for purchase mortgages remained constrained. Industry participants aren’t optimistic that production will pick up much through the rest of the year.

Economists still differ in their forecasts about how many times the Fed will cut rates this year and what that means for mortgage originations.