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Inside Mortgage Trends

July 8, 2016

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Red-Hot California Mortgage Market in 2Q16 Boosts GSE Jumbo, Broker Share

Mortgage lenders delivered a hefty $218.29 billion of single-family mortgages into Fannie Mae and Freddie Mac mortgage-backed securities during the second quarter of 2016, according to a new Inside Mortgage Trends analysis of MBS disclosures made by the two government-sponsored enterprises. That was an increase of $45.32 billion over the first quarter, and 30.2 percent of the gain came from California, where total GSE loan sales jumped ... [Includes two data charts] Read More

New Refi Activity Limited By Previous Refis

Lenders looking to boost refinance production as interest rates decline will be limited by the large number of borrowers who have already taken advantage of low rates in recent years, according to industry analysts. Applications for refis increased by 21.0 percent during the week of June 27, according to the Mortgage Bankers Association, as interest rates declined with the United Kingdom’s vote to exit the European Union. The average interest rate on a 30-year, fixed-rate ... Read More

Greater Compliance Efforts Producing Better Loans

More rigorous regulatory requirements and the resulting compliance efforts on the part of mortgage lenders might be increasing workloads and biting into profit levels, but they are also producing higher quality loans, which should pay off in lower losses and less litigation, according to one industry economist. “Better technology and standards in the loan application process combined with more time spent underwriting each loan application may be increasing the cost of ... Read More

‘Frictionless’ Originations the Future, Oracle Says

The mortgage lenders that will thrive in the future will be those that lead the market’s charge toward “frictionless” originations, according to a recent white paper from Oracle Financial Services, a division of the global technology provider. The key for lenders is to re-invent their processes and adopt digital-based customer-centric originations in order to improve efficiency, reduce cost and enhance the borrower experience.“The correlation between process and profitability is ... Read More

Smooth Sailing Ahead for MI Firms. Right?

For most of the year, it’s been an unpleasant ride for the nation’s mortgage insurers: Ugly share price performance, lower revenues (though not awful), and the fear that any day now the FHA might lower its premiums and cut into private MI market share. But over the past few weeks, policy winds in Washington have shifted with analysts rethinking the short-term prospects for the sector. According to a recent report from FBR & Co., “policy ... [Includes one data chart] Read More

‘Brexit’ Hits U.S. Housing Market

Great Britain’s exit from the European Union has triggered a drop in mortgage rates that will have significant effects on the U.S. mortgage market, according to a recent analysis by the Urban Institute. UI’s analysis attributed the mortgage-rate drop to a decline in the 10-year Treasury rate, which fell from 1.74 percent. The rate fell to 1.46 percent on the day after the vote. The more capital continues swarming toward the safety of 10-year T-notes, the lower rates would fall ... Read More

Credit Characteristics of Applicants Vary by Age

Younger loan applicants tend to have worse credit characteristics, but they also have more potential for higher earnings, according to a new analysis by CoreLogic. The firm recently provided details on the characteristics of loan applications by Millennials (born 1981 to 1997), Generation X (1965 to 1980), Baby Boomers (1946 to 1964) and the Silent Generation (1928 and 1945). The data covered loan applications in March, April and May. Generally, the younger applicants ... Read More

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