News

As mortgage applications increase, mortgage rates have begun to drop, according to data from the Mortgage Bankers Association (MBA) and Freddie Mac. The MBA’s Market Composite Index, a measure of mortgage loan application volume, rose 1.5 percent from a week earlier, while the 30-year fixed-rate mortgage dropped from 4.10 to 4.08 percent. The average loan size for purchase applications was at $318,700, a survey high.

New home purchases are on the rise. Recent reports show increases in new home purchases. According to the Survey, year-over-year new home purchases for March 2017 increased 6.7 percent compared to March 2016. Month-over-month, applications grew 23 percent. Average loan size decreased in March, from $330,208 in February to $328,192.

The National Mortgage Servicing Association (NMSA), recently announced the appointment of Ray Barbone, EVP, of Mortgage Services at BankUnited, as the new NMSA Chairperson. Barbone assumed the seat recently vacated by J.K. Huey, SVP at Wells Fargo, during the NMSA annual member meeting on April 5 in Washington D.C.

The increased amount of data which the CFPB has required lenders to report has led increased complications. Several lenders and trade groups have asked for clarification on the definition and reporting requirements for new HMDA reporting categories, such as “loan purpose” the unique identifier for the originator of the loan. In a statement, the CFPB let firms know that they can avoid reporting on those topics if they do not have the information due to loans which were purchased from a third party.

Dart Appraisal, an independent appraisal management company, recently announced its collaboration with HouseCanary, a San Francisco-based real estate data analytics company. Through this collaboration, Dart Appraisal will offer a new valuation product to its lender clients.

Refinances fell in February as mortgage rates rose, according to the Federal Housing Finance Agency’s (FHFA) February 2017 Refinance report. The average interest rate on a 30-year fixed rate mortgage in February 2017 was 4.17 percent, up from January 2017’s 4.15 percent.

A new survey reveals that consumers are most concerned about closing costs and interest rates when choosing a lender to work with. Service and convenience followed closely behind as top influencing factors. Only 37 percent of those surveyed said they were satisfied with the mortgage application process.

The first quarter was a mixed bag for Wells Fargo, JPMorgan Chase, and PNC. All three bank’s latest earning reports reveal lower gains on residential mortgage servicing rights and lower mortgage loan revenues, but the banks are optimistic going into the 2017. Overall earnings for JPMorgan Chase and Wells Fargo were down slightly from the previous quarter.

Independent mortgage bankers profits are up, according to the Annual Mortgage Bankers Performance Report. Independent mortgage banks and mortgage subsidiaries of chartered banks made an average of $157 more on average per loan originated in 2016 compared to 2015. The report also found that average production volume was $2,679 million per company, another increase from 2016’s $2,504 million per company.

According to new rankings, Tampa, Florida, has the best single-family housing market in the country. Dallas; Las Vegas; Columbus, Ohio; and Jacksonville, Florida also made the top five. All had strong demand, home price appreciation, and economic growth.