Usage of Freddie Mac’s Loan Prospector is largely confined to mortgages that will be delivered to the GSEs while usage of Fannie Mae’s Desktop Underwriter is more widespread in the mortgage market.
Renters are finding it more challenging to become homeowners as increasing rents eat into downpayment funds and rising interest rates push homes further out of reach.
Higher interest rates didn’t have much of an impact on home price appreciation in March; Freddie Mac launched new automated underwriting capabilities; Fitch shifts its outlook for ratings of Finance of America Companies to negative; MISMO remains busy.
As retail and correspondent loan sales to the agencies fell by 20%, lenders became visibly less discerning about credit quality, with credit scores dropping and DTI/LTV ratios rising. (Includes two data charts.)
Rising interest rates helped to push up income tied to mortgage servicing rights more than they reduced income from originations among a group of publicly-traded nonbanks. Results varied to some extent, with one large mortgage company even taking a loss in the quarter. (Includes data chart.)
If projections by the MBA are correct, interest rates for mortgages are levelling off, which should relieve some of the pressure lenders are facing on originations and profit margins.
It’s no secret that mortgage bankers and brokers are cutting workers as lending ebbs in a much higher rate environment. But with the exception of Better.com, the layoffs have not been huge. Yet.
A Fannie Mae survey of lenders found almost all hope the appraisal process will enter the 21st Century, but most would first invest in digital loan application systems or e-mortgages.
RSS