Straight talk from Impac CEO George Mangiaracina: “These are extraordinary times with unprecedented interest rate shocks and global market dislocation so any enthusiasm for future prospects should be properly balanced and tempered by potential supply and distribution constraints..."
Interestingly, mortgage rates actually increased on Monday and Tuesday, some loan officers reported. As New Jersey loan broker Brian Benjamin put it: "Every day is a roller coaster."
While traditional non-agency jumbo lending lagged the overall market, the conforming-jumbo business was cracking. Fannie Mae, Freddie Mac and Ginnie Mae securitized $51.15 billion of single-family loans above last year’s $484,350 limit for one-unit properties.
But there’s also a dark side to the rate plunge: The servicing side of the mortgage business is looking at mark-to-market bloodbaths that could be the norm if rates don’t snap back by the end of the current quarter.
According to Anthony Hsieh, founder and CEO of top-10 lender loanDepot, the mortgage industry might want to ponder creating a “reservation” system for incoming applicants.
“Mortgage originators are looking at record earnings for the first quarter,” said Chuck Klein, managing director of Mortgage Banking Solutions, Austin, TX, a consulting firm engaged in warehouse reviews and M&A activity.
RSS